Energy and Food Push Inflation, Consumer Price Index (CPI) Down in December

The Consumer Price Index for All Urban Consumers showed inflation at the consumer level fell 0.1% last month, slightly missing economists’ expectations for a flat reading. The Bureau of Labor Statistics, which conducts the CPI for the Labor Department, said–excluding the food and energy components–consumer prices rose 0.1%, also slightly lower than the 0.2% forecast.

Table A. Percent changes in CPI for All Urban Consumers (CPI-U): U.S. city
 average
                                                                               
                                                                               
                                  Seasonally adjusted changes from             
                                          preceding month                      
                                                                          Un-  
                                                                       adjusted
                                                                        12-mos.
                              June  July  Aug.  Sep.  Oct.  Nov.  Dec.   ended 
                              2015  2015  2015  2015  2015  2015  2015   Dec.  
                                                                         2015  
                                                                               
                                                                               
 All items..................    .3    .1   -.1   -.2    .2    .0   -.1       .7
  Food......................    .3    .2    .2    .4    .1   -.1   -.2       .8
   Food at home.............    .4    .3    .3    .3    .1   -.3   -.5      -.4
   Food away from home (1)..    .2    .0    .2    .5    .2    .2    .1      2.6
  Energy....................   1.7    .1  -2.0  -4.7    .3  -1.3  -2.4    -12.6
   Energy commodities.......   3.1    .7  -4.1  -8.6    .4  -2.4  -4.0    -20.0
    Gasoline (all types)....   3.4    .9  -4.1  -9.0    .4  -2.4  -3.9    -19.7
    Fuel oil (1)............  -1.9  -3.4  -8.1  -2.4  -1.1  -1.3  -7.8    -31.4
   Energy services..........    .2   -.6    .5   -.4    .2   -.1   -.8     -4.3
    Electricity.............    .2   -.4    .3   -.5    .4    .3   -.4     -1.2
    Utility (piped) gas                                                        
       service..............    .3  -1.4   1.2   -.3   -.7  -1.9  -2.3    -14.9
  All items less food and                                                      
     energy.................    .2    .1    .1    .2    .2    .2    .1      2.1
   Commodities less food and                                                   
      energy commodities....   -.1   -.1   -.1    .0   -.1   -.2   -.1      -.4
    New vehicles............    .1   -.2    .0   -.1   -.2    .1   -.1       .2
    Used cars and trucks....   -.4   -.6   -.4   -.2   -.3   -.1    .1       .4
    Apparel.................   -.1    .3    .3   -.3   -.8   -.3   -.2      -.9
    Medical care commodities    .0    .1    .3   -.2    .2    .3   -.1      1.5
   Services less energy                                                        
      services..............    .3    .2    .1    .3    .3    .3    .2      2.9
    Shelter.................    .3    .4    .2    .3    .3    .2    .2      3.2
    Transportation services     .4   -.2   -.3    .1    .2    .6    .3      2.6
    Medical care services...   -.2    .1    .0    .3    .8    .4    .1      2.9

   1 Not seasonally adjusted.

From the Report:

The indexes for energy and food both declined for the second month in a row, leading to the decline in the seasonally adjusted all items index. The energy index fell 2.4 percent as all major component energy indexes declined. The food index fell 0.2 percent as the index for food at home decreased 0.5 percent, led by a sharp decline in the index for meats, poultry, fish, and eggs.

The index for all items less food and energy rose 0.1 percent in December, its smallest increase since August. The index for shelter continued to rise, and the indexes for medical care, household furnishings and operations, motor vehicle insurance, education, used cars and trucks, and tobacco also increased in December. However, a number of indexes declined, including those for apparel, airline fares, personal care, new vehicles, and communication.

The all items index rose 0.7 percent over the last 12 months, compared to the 0.5 percent 12 month increase for the period ending November. The food index rose 0.8 percent over the last 12 months, though the index for food at home declined. The energy index fell 12.6 percent, with all its major components decreasing. The index for all items less food and energy increased 2.1 percent over the last 12 months.