Falling Gasoline Price Slowed Inflation In December, Housing Inflation Stays Elevated

  • Brian Turner
  • Jan 12, 2023
  • Headline consumer inflation declined for the sixth month in a row after energy prices declined in five of the last six months. Elevated housing prices continued to fuel overall inflation.

    The Consumer Price Index inflation fell 0.1% in December from November and eased to 6.5% on an annual basis, the Bureau of Labor Statistics reported Thursday.

    The inflation index declined for the first time since May 2020 and seems to have peaked at 9.1% in June 2020.

    Energy prices rose 7.3% and food prices advanced 10.4% from a year ago and price increases for both categories were smaller than the rise in November.

    Used vehicle prices declined 8.8% in December after falling at 3.3% in November and fell 2.5% from the previous month.  

    Gasoline prices at the pump stations in December declined 9.4% from the previous month and fell 1.5% from a year ago and fuel prices have declined in the last five of the last six months after reaching a peak in June 2022.

    Core inflation, which excludes energy and food, accelerated to 0.3% from November and eased to 5.7% from a year ago.

    Cost of shelter stayed elevated and increased 0.8% on a monthly basis and jumped 7.5% from a year ago.  

    Despite the easing of inflation, price increases are still significantly ahead of the Federal Reserve's target of 2%.

     


Press Release