WASHINGTON - The U.S. December consumer price index printed up 0.3% in its biggest gain since June, as expected. The core CPI posted a 0.1% increase (0.1088% unrounded), a little lower than expected. These resulted in a 1.5% rise overall and a 1.7% gain in core over the year.
Food was up 0.1% as dairy rose but prices of fruits and vegetables fell.
Energy costs jumped 2.1% (0.6% before adjustment) after November-October drops, with only natural gas prices lower. Gasoline prices rose 3.1% after a 1.6% decline in November. Before adjustment gas prices were up a more modest 0.7%.
In core, new vehicles were unchanged, used cars dipped 0.2%, recreation commodities slid 0.7% as electronics prices fell, medical commodities dropped 0.8% (new measurement methods might be moderating this area), and airfares slumped 4.7%. These offset a 0.9% rebound in apparel after three monthly dips.
Owners' equivalent rent was up 0.2% for a 2.5% increase over the year. The year 2013 represented a re-acceleration in this sector.
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