Thursday, January 16, 2014

Consumer Prices Improved 0.3% in December

The consumer price index increased 0.3% in December as energy prices surged. Food prices grew modestly. The increase from year-ago levels grew to 1.5%, however this remains below the 2.0% year over year growth goal set by the Federal Reserve. The headline index is at it's strongest level in 5 months.

Core prices maintained their trend of growth between 0.1% to 0.2% with a recording of 0.1% in December. Goods prices remained constant and services improved slightly by 0.1%.

Energy prices recovered 2.1%, although this doesn’t fully offset the previous two months of decline. Compared with year ago levels, energy prices are only 0.4% higher.

The outlook for 2014 looks more positive with higher price increases, as Europe comes out of a recession and the fiscal climate at home is more stable.

Read the BLS report.

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