Core Inflation Increases Modestly in December

The U.S. Bureau of Labor Statistics has reported that the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in December on a seasonally adjusted basis after rising 0.3% in November. Over the last 12 months, the all items index increased 2.3% before seasonal adjustment. The indexes for gasoline, shelter, and medical care all rose in December, accounting for most of the increase in the seasonally adjusted all items index. The gasoline index increased 2.8% in December. Other major energy component indexes were mixed, and the energy index rose 1.4%.  The food index rose 0.2% in December with the indexes for both food at home and food away from home increasing over the month.