Energy Prices Bring Down CPI in December

The Consumer Price Index fell 0.1 percent in December, largely due to declines in the indexes for both energy and food. Over the last 12 months however, the index for all items increased 0.7 percent before seasonal adjustment.

The energy index fell 2.4 percent as all major energy components declined. The index for fuel oil fell most sharply at 7.8 percent on the month. Over the past 12 months, energy prices have fallen 12.6 percent on an unadjusted basis.

Prices for all items less food and energy items increased 0.1 percent, 10 basis points below November’s increase. The indexes for used cars and trucks, shelter, transportation and medical care services rose, while new vehicles, apparel and medical care commodities fell.

The food index also dipped in December, falling 0.2 percent as the index for food at home decreased 0.5 percent. Over the past year the food index has increased 0.8 percent on an unadjusted basis.

Read the BLS release.