US inflation eased slightly in December but ended 2022 with slightly higher inflation. According to Labor Department data released Thursday, the US consumer price index fell a very modest 0.1% in December.The exponential measure of inflation.
The Fed closely monitors the prices of various consumer goods and when central banks set interest rates, Xinhua reported.
Thursday’s numbers were in line with the estimates of economists polled by Dow Jones. The drop marks the biggest monthly decline in inflation since April 2020, but inflation remains the worst in 40 years amid the Covid shutdown that has ravaged the US economy.
A sharp decline in gasoline prices accounted for most of the slight decline in the index. Pump costs were down 9.4% month-on-month and are now 1.5% lower than the same period last year. But at the same time, gas prices are much higher than they were two years ago. Kerosene costs were also down 16.6% month over month. Food prices rose 0.3% month-on-month in December, an increase from already record highs. Shelters were up 0.8% MoM and 7.5% YoY