US consumer prices fall in December
United States consumer prices unexpectedly fell for the first time in more than 2.5 years in...
United States consumer prices unexpectedly fell for the first time in more than 2.5 years in December amid declining prices for gasoline and other goods, suggesting that inflation was now on a sustained downward trend.
The consumer price index dipped 0.1 per cent last month after gaining 0.1 per cent in November, the Labor Department said on Thursday (Jan 12). That was the first decline in the CPI since May 2020, when the economy was reeling from the first wave of COVID-19 infections.
The Federal Reserve is now seen to likely deliver just a quarter-point interest rate hike at its next meeting and likely to ultimately stop raising rates short of 5 per cent, after Thursday's government report showed inflation eased last month.