Cheaper gas sends US consumer prices down 0.1 pct

WASHINGTON (AP) — Consumer prices slipped 0.1 percent last month, pulled down by sharply lower gas prices and cheaper air fares, used cars, and mobile phone plans.

The Labor Department said the consumer price index rose just 1.9 percent in December from a year earlier, the first time it has fallen below 2 percent since August 2017.

Excluding the volatile energy and food categories, core prices rose 0.2 percent for the third month in a row. They rose 2.2 percent from a year ago for the second straight month.

The figures suggest that the healthy economy is not yet creating widespread inflation pressures. That gives the Federal Reserve more leeway in deciding whether to raise interest rates. Fed Chair Jerome Powell has said the Fed can be “patient” regarding rate hikes this year.

WREX
Associated Press

Associated Press

More News

13 Weather Authority

Rockford
14°
Freeport
13°
DeKalb
13°
Rochelle
14°
Sterling
14°
Janesville
18°
Monroe
14°
Connect with WREX
Top Stories
Scroll to top
Skip to content