US Inflation Rate at 2-1/2-Year High Of 2.1%

Consumer prices in the United States increased 2.1 percent year-on-year in December 2016, following a 1.7 percent rise in November and matching market expectations. The inflation rate accelerated for the fifth consecutive month to the highest since June of 2014, boosted by gasoline and shelter cost.

Year-on-year, energy prices jumped 5.4 percent, following a 1.1 percent rise in November. Inflation accelerated for transportation services (2.8 percent from 2.5 percent in November) and was steady for shelter (3.6 percent) and medical care (3.9 percent). In addition, food prices declined at a slower 0.2 percent (-0.4 percent in November). 

Annual core inflation, which excludes food and energy, rose to 2.2 percent from 2.1 percent in the previous two months and matching expectations.  

On a monthly basis, consumer prices increased 0.3 percent, higher than 0.2 percent in November and also in line with forecasts, boosted by shelter (0.3 percent) and gasoline (3 percent). In contrast, food cost declined, offsetting an increase in the index for food away from home and leaving the overall food index unchanged for the sixth consecutive month. Excluding food and energy, prices rose 0.2 percent, the same as in November. Along with shelter, prices went up for motor vehicle insurance, medical care, education, airline fares, used cars and trucks and new vehicles but fell for apparel and communication. 

US Inflation Rate at 2-1/2-Year High Of 2.1%

BLS | Joana Taborda |
1/18/2017 1:57:58 PM