Published: Fri, January 12, 2018
Business | By Max Garcia

United States consumer prices up tiny 0.1 percent in December

United States consumer prices up tiny 0.1 percent in December

The figures for rural and urban areas in December were 5.08% and 4.71%.

Avery Shenfeld, senior economist at CIBC World Markets, said that the US dollar could see some momentum Friday following CPI data.

Food inflation remained volatile with prices falling in September and firming up from October, as eggs, vegetables, sugar and fruits became relatively more expensive.

According to some economists, the latest rise in core inflation provides some incentive to raise interest rates.

Analysts polled by Reuters had predicted December's consumer inflation rate would climb to 5.10 percent, the highest since July 2016, from 4.88 percent in November.

On the other hand, the report showed a steep drop in energy prices, which slumped by 1.2% in December after spiking by 3.9% in November.

"The rise in housing inflation is likely to be persistent, while rising crude oil prices pose another risk".

While India is expected to grow at 6.5 per cent in the current fiscal year ending in March, a continued rise in inflation from 1.46 per cent in June, the lowest on record since 2012, has alarmed policymakers.

The December increase in consumer prices followed a sharper 0.4 per cent increase in November, the Labor Department reported Friday.

As per use-based classification, the growth rates in November 2017 over 2016 are 3.2 percent in primary goods, 9.4 percent in capital goods, 5.5 percent in intermediate goods and 13.5 percent in infrastructure/ construction goods.

The pullback in energy prices came as gasoline prices tumbled by 2.7% in December following a 7.3% jump in the previous month.

Along with the shelter index, the indexes for medical care, used cars and trucks, new vehicles, and motor vehicle insurance also increased in December.

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