US consumer prices jumped 0.3 per cent in December after two basically flat months mainly due to higher energy prices, the Labor Department says.
But stripping out the volatile energy and food price components, the core consumer price index (CPI) rose just 0.1 per cent, showing that inflation remains largely tame despite the economy’s gains.
Energy costs rose 2.1 per cent in the month.
For the 12 months through the end of December, the overall CPI was up just 1.5 per cent, and the core CPI was up 1.7 per cent, below the Federal Reserve’s 2.0 per cent target rate.
Of the full-year figure, price gains were highest in housing (+2.5 per cent) and healthcare costs (+2.5 per cent).