US consumer prices dropped slightly in Dec 2022 but remain at record high

Washington, Jan 13

The year 2022 ended with inflation in the US abnormally high, despite falling slightly in December.

The US Consumer Price Index fell a very modest 0.1 percent in December, according to Labor Department data released Thursday.

The index measures the cost of a broad array of consumer goods and is closely watched by the Federal Reserve as the central bank sets interest rates, reports Xinhua news agency.

Thursday's figures were in line with estimates from economists surveyed by Dow Jones.

While the decrease amounted to the biggest month-on-month inflation drop since April 2020, during the Covid lockdowns that wreaked havoc on the US economy, inflation remains the worst in 40 years.

A sharp drop in gasoline prices accounted for most of the tiny decline in the index. Costs at the pump dropped 9.4 per cent month on month and currently stand at 1.5 per cent lower than the same period last year.

But at the same time, gas prices are still significantly higher than two years ago.

The cost of fuel oil also fell 16.6 per cent month on month.

Food prices increased in December 0.3 per cent month on month, gaining from already record highs.

Shelter increased 0.8 per cent month on month for a gain of 7.5 per cent from more than a year ago.