US consumer prices rose 0.1% in December

Data released by the U.S. Department of Labor showed that due to soaring energy prices, the consumer price index (CPI) rose by 0.5% in December, the largest increase since June 2009.

However, after deducting energy and food prices, core prices rose only 0.1% from November, indicating that there was no inflationary pressure.

The entire consumer price index rose by 1.5% in 2010, which was lower than 2.7% in 2009. The core consumer price increase for the whole year was 0.8%, which was also lower than the 1.8% increase in the previous year. Core inflation rose by 0.8%, well below the target range of 1.5% to 2% set by the FTA.

Fellow Ben Bernanke stated that inflation is expected to continue to weaken and wages and prices will decline steadily.

The Labor Department said that energy prices soared 4.6% in December, the biggest increase since June 2009. Gasoline prices rose by 8.5%, fuel prices increased by 4.9%, utility prices increased by 1.4%, and airline fares increased by 3.3%.

In addition, food prices rose slightly by 0.1%, which was lower than the growth rate of 0.2% in November; apparel prices rose slightly by 0.1% and health care costs increased by 0.3%; old cars fell for the fourth week in a row and declined by 0.1% in December. The cost of living increased for the third month in a row, with 0.1% in December and rent rising by 0.1%.