US inflation decelerates to 1.9% in December

Economy 1/11/2019, 2:32 PM
US inflation decelerates to 1.9% in December

Consumer prices before seasonal adjustment in the United States rose 1.9% in December compared to the same month a year ago, according to a report published by the US Bureau of Labor Statistics on Friday. However, December's annual inflation figure is smaller than the 2.2% registered a month ago and marks the first time that the 12-month change came under the 2% mark since August 2017. Meanwhile, excluding food and energy, the index increased by 2.2% in the past 12 months. The food index added 1.6%, while energy prices declined by 0.3%.

Compared to last month, consumer prices were down 0.1% on a seasonally adjusted basis. The largest negative contribution to the decline in the all items index was provided by gasoline prices, which fell by 7.5% in December. On the positive side, price increases were observed for shelter, food and other energy components. The energy index dropped by 3.5%, while the food index rose by 0.4% during the same month. Excluding the volatile prices of food and energy, the index was up by 0.2%, the same as in the past two months.

Breaking the News / FH