Consumer Price Index Declines 0.1% in December; All-Items Index Up 6.5% Year-Over-Year

The US Bureau of Labor Statistics reported on Thursday (1-12-22) that the Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1% in December, on a seasonally adjusted basis, after increasing 0.1% in November and 0.4% in both October and September. Over the past 12 months, the all-items index has increased 6.5% before seasonal adjustment.

According to the BLS, the index for gasoline was the largest contributor to the monthly all items decline, more than offsetting increases in the shelter indexes. The food index increased 0.3% over the month, with the food at home index rising 0.2%. The energy index declined 4.5% over the month as a result of the decrease in the gasoline index; other major energy components all increased over the month.

The index for all items less food and energy rose 0.3% in December after rising 0.2% in November, 0.3% in October, and 0.6% in September. The indexes for shelter, household furnishing and operations, motor vehicle insurance, recreation, and apparel all increased in December. The indexes for used cars and trucks and airline fares were among those that decreased during December.

The all items less food and energy index for the 12-month period ending in December rose 6.5%. This is the smallest 12-month increase since the period ending in October 2021. The all items less food and energy index rose 5.7% over the last 12 months. The energy index increased 7.3%, and the food index rose 10.4% in the 12-month period ending in December. The BLS notes that all of these increases were smaller than for the 12-month period ending in November.