U.S. CPI cools down as gasoline decreases

January 13, 2023 (MLN): The Consumer Price Index (CPI) for American consumers declined 0.1% in December on a seasonally adjusted basis, after increasing 0.1% in November, the U.S. Bureau of Labor Statistics (BLS) reported on Thursday.

Over the last 12 months, the all-items index increased by 6.5% before seasonal adjustment.

The index for gasoline was by far the largest contributor to the monthly all-items decrease, more than offsetting increases in shelter indexes, the report noted.

Furthermore, the food index increased 0.3% over the month with the food at home index rising 0.2%. The energy index decreased 4.5% over the month as the gasoline index declined other major energy component indexes increased over the month.

U.S. consumer prices fell for the first time in more than 2-1/2 years in December, offering hope that inflation was now on a sustained downward trend, though the labor market remains tight, as per Reuters. 

Americans also got more relief at the supermarket last month, with the report from the Labor Department on Thursday showing food prices posting their smallest monthly increase since March 2021. But rents remained very high and utilities were more expensive, it added. 

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