Consumer Price Inflation Comes In Above Economists' Expectations in December

Consumer Price Inflation Comes In Above Economists' Expectations in December

The Consumer Price Index (CPI) rose 0.3% in December, according to data released by the United States Labor Department Bureau of Labor and Statistics on Thursday.

“[CPI] rose 0.3% last month, for an annual gain of 3.4%,” reported Reuters. “That was expected to be 0.2% and 3.2%, respectively.”

“Inflation picked up at the end of the year, interrupting a cooldown that continued toward the end of 2023,” reported Axios. “The Federal Reserve is looking for signs of cooler inflation as it looks to lower interest rates in the months ahead.”

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Inflation in Focus

According to BLS: 

"The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in December on a seasonally adjusted basis, after rising 0.1 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.4 percent before seasonal adjustment.

The index for shelter continued to rise in December, contributing over half of the monthly all items increase. The energy index rose 0.4 percent over the month as increases in the electricity index and the gasoline index more than offset a decrease in the natural gas index. The food index increased 0.2 percent in December, as it did in November. The index for food at home increased 0.1 percent over the month and the index for food away from home rose 0.3 percent. 

The index for all items less food and energy rose 0.3 percent in December, the same monthly increase as in November. Indexes which increased in December include shelter, motor vehicle insurance, and medical care. The index for household furnishings and operations and the index for personal care were among those that decreased over the month."