US Consumer Price Index Increases 2.9% Year-Over-Year in December

On Wednesday, the US Bureau of Labor Statistics (BLS) reported that the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4% on a seasonally adjusted basis in December, following a 0.3% increase in November. Over the past 12 months, the all-items index has increased 2.9% before seasonal adjustment.

The energy index rose by 2.6% in December, contributing to over 40% of the monthly increase in the overall index. The gasoline index increased 4.4% over the month. The food index also rose, with a 0.3% increase driven by similar gains in both the index for food at home and the index for food away from home, each rising 0.3%.

The index for all items less food and energy rose 0.2% in December, after posting a 0.3% increase in each of the previous four months. Indexes that increased include shelter, airline fares, used cars and trucks, new vehicles, motor vehicle insurance, and medical care. The indexes for personal care, communication, and alcoholic beverages were among the few major indexes that decreased.

The all-items index increased 2.9% for the 12 months ending in December, following a 2.7% increase over the 12 months ending in November. The index for all items less food and energy increased by 3.2% over the past year. Meanwhile, the energy index saw a 0.5% decline, while the food index rose by 2.5%.