WASHINGTON — Consumer prices rose 0.5% in December, led by a sharp rise in gasoline prices, the Labor Department reported Friday.
Core prices, which exclude volatile food and energy costs, edged up only 0.1%. Economists expected consumer prices to rise 0.4% and core prices to rise 0.1%.
Overall prices rose 1.5% from December 2009 to December 2010, but core prices were up just 0.8%. Price inflation for consumer goods during 2010 increased 1.6%, compared to a 0.4% decline for all of 2009.
“Core inflation continues to track below 1%, and well below the [Federal Reserve’s] target range of 1.5% to 2.0%,” said Brian Bethune, chief U.S. financial economist at IHS Global Insight. “The FOMC has a green light to continue with its extremely accommodative stance.”
