WASHINGTON — The U.S. December consumer price index report was favorable, though at this point government officials are probably worried about falling inflation spilling from the energy sector into other areas.

December CPI printed down 0.7%, with core flat. Overall CPI gained 0.1% over the year — its slowest since 1954 when CPI was 0.7% lower over the year — and core was up 1.8% over the year.

Core was lower in December by 0.4% in new vehicles, 0.9% in apparel, 1.2% in airline fares, 0.2% in recreation, and 0.5% in personal computers.

Food prices fell 0.1% on broad drops. Energy posted down 8.3% in its biggest monthly drop ever, with most areas lower except electricity at up 0.6%.

Services were 0.1% higher and owners’ equivalent rent rose 0.1%. Medical care was up 0.3%.

— Market News International

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