US consumer inflation eases to 6.5% in December

By Ovunc Kutlu

ISTANBUL (AA) – Annual consumer inflation in the US came in at 6.5% in December, easing from the 7.1% level in November, according to official figures released on Thursday.

The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, came in line with the market estimate.

The figure has been the smallest 12-month increase since the period ending October 2021, while it is a sharp decline from a 9.1% yearly gain in June, which had been the largest 12-month rise since November 1981.

On a monthly basis, the CPI in December fell 0.1% from the previous month. While the market expectation for the data was to remain unchanged on a monthly basis, the CPI in November rose 0.1% from the month before.

"The food index increased 0.3 percent over the month with the food at home index rising 0.2 percent," the Labor Department said in a statement.

"The energy index decreased 4.5 percent over the month as the gasoline index declined; other major energy component indexes increased over the month," it added.

The core CPI, which excludes food and energy, gained 0.3% in December from the previous month, coming in line with the market expectation. In November, core CPI posted a monthly increase of 0.2%.

Annually, the core CPI rose 5.7% in December, also coming in line with the market estimate, after it rose 6% in November year-on-year.

"The energy index increased 7.3 percent for the 12 months ending December, and the food index increased 10.4 percent over the last year; all of these increases were smaller than for the 12-month period ending November," the statement said.