Thursday, January 19, 2012

Consumer Prices Unchanged in December

In December the consumer price index remained unchanged for the second consecutive month. Headline CPI has failed to register positive growth for three consecutive months causing the year ago change from December 2010 to now be 3.0%. Core prices rose by 0.1% in December, moderating from November’s 0.2% increase. The year ago change for core prices held at 2.2%, an acceptable level for policymakers.

December’s slight increase in core prices was more than offset by falling energy prices, which fell 1.3% in December. Energy prices have now risen 6.6% year-over-year, significantly less than the 19.6% year-over-year gain reported in September. Food prices rose by 0.2% in December, slightly higher than the pace of 0.1% seen in the two previous months.

Price appreciation in core goods was driven by services, which saw prices rise 0.3%, an increase from the 0.2% reported last month. This was partially offset by a 0.2% fall in the price of goods, the first decline in three months.

Read the report.

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