The Labor Department reported on Wednesday the U.S. consumer price index
(CPI) rose 0.5 percent m-o-m in December, following an unrevised 0.8 percent
m-o-m gain in the
previous month. This was the smallest one-month advance in headline CPI in
three months.
Over the last 12 months, the CPI jumped 7.0 percent y-o-y, quickening
from an unrevised gain of 6.8 percent y-o-y reported for the period ending in November.
This marked the largest 12-month rise since June 1982.
Economists had forecast the CPI to increase 0.4 percent m-o-m and 7.0
percent y-o-y in the 12-month period.
According to the report, the major contributors to the m-o-m advance in
all items index in December were gains in the indexes for shelter (+0.4 percent
m-o-m) and for used cars and trucks (+3.5 percent m-o-m). In addition, the food
index (+0.5 percent m-o-m) also rose, albeit at a slower pace than in recent
months. At the same time, the energy index (-0.4 percent m-o-m) dropped, recording
its first decrease since April.
Meanwhile, the core CPI excluding volatile food and fuel costs climbed
0.6 percent m-o-m in December after an unrevised 0.5 percent m-o-m
increase in the prior
month.
In the 12 months through December, the core CPI soared 5.5 percent, compared to an unrevised 4.9 percent surge for
the 12 months ending November. This was the largest 12-month gain since February
1991.
Economists had forecast the core CPI to advance 0.5 percent m-o-m and 5.4
percent y-o-y last month.