CPI: December consumer prices rose 2.6% annually; less than expected
A grocery shopper looks at meat products at a Safeway supermarket in Washington, D.C., in October 2022. The consumer price index showed inflation rising less than expected in December, the Bureau of Labor Statistics reported Tuesday. File Photo by Michael Reynolds/EPA-EFE
Jan. 13 (UPI) — The consumer price index showed inflation rising less than expected in December, the Bureau of Labor Statistics reported Tuesday.
The bureau reports that seasonally adjusted consumer prices grew by about 0.2% for the month, and about 2.6% for the 12 months ending in December. Both figures fall about 0.1% short of what was expected.
The biggest contributor to rising prices was the index for shelter, rising about 0.4%. The food index was 0.7% and energy’s index was 0.3% in December.
Tuesday’s CPI tracked several categories that were absent in October and November reports, including food, some energy items, shelter and other items like vehicles and medical care commodities. Federal reports were impacted by the 43-day government shutdown that began on Oct. 1.
The rate for all items increased by 2.7% for the year ending in December. This figure matched the Dow Jones estimate.
In total, prices remain elevated but the latest CPI indicates inflation has cooled some. The Federal Reserve is targeting an annual 2% rate of inflation before it brings interest rates down.
Last month, the Fed cut interest rates by a quarter percentage point to a range of 3.5% to 3.75%. It is the lowest its interest rates have been since November 2022.
