Jan 14, 2021 - Economy

Inflation rose more than expected in December

Data: Bureau of Labor Statistics; Chart: Axios Visuals
Data: Bureau of Labor Statistics; Chart: Axios Visuals

The Consumer Price Index rose 0.4% in December, the biggest increase since August, largely because of rising gasoline prices, the U.S. Bureau of Labor Statistics reported.

Details: The increase "was driven by an 8.4% increase in the gasoline index, which accounted for more than 60% of the overall increase," BLS said.

  • The core index, which strips out volatile food and energy prices, rose 0.1% for the month after rising 0.2% in the previous month.

Yes, but: For the year, CPI rose just 1.4% for the 12 months ending December, a slightly larger increase than the 1.2% rise in November.

  • That was slightly more than expected but still well below the Fed's 2% inflation target. (The Fed also prefers to track the personal consumption expenditures metric, which has historically shown lower readings than CPI.)
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