December CPI Up 0.3%; Core Rate Rises 0.2%

WASHINGTON — The U.S. December consumer price index was up 0.3% and the core rate rose 0.2%, a little worse than expected. Underlying price details are even scarier.

Over the year CPI posted a 4.1% rise, its biggest advance since a 6.1% jump in 1990. Core posted 2.4% higher over the year. Unrounded core CPI was up 0.2422% for December, a high reading and a bond-market negative.

Energy was up 0.9%. Seasonal adjustment turned a negative1.6% gasoline reading into a 1.1% gain.

Food was up 0.1%, with most areas flat to lower. This follows surges in the prior two months as sub-optimal farm conditions raised costs.

Core was held down by flat new vehicles. Excluding autos, core would have pushed to a 0.3% increase, the Bureau of Labor Statistics estimated.

The numbers are all a tad worse than expected and are a reason the Federal Reserve has been reluctant to ease interest rates. It’s unclear if steady to falling energy prices will contain overall prices ahead, but that is the hope.

— Market News International

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