Inflation Eased in December at 6.5 Percent, Marking 6 Months of Slowing Price Increases

Price increases continued to ease in December, marking the sixth consecutive month of a decrease in the pace of price increases.

The latest data released by the Labor Department showed the consumer price index (CPI)– a measure of the cost of goods and services — rose 6.5% in December compared to the previous year, down from 7.1% in November.

Core CPI, which excludes energy and food prices, rose 5.7% in December compared to the previous year.

And on a month-to-month basis, the CPI fell 0.1% in December. In October, CPI rose 0.1% on a month-to-month basis, and it rose 0.4% on a monthly basis in October.

Heather Long, an economic columnist for The Washington Post, noted the month-to-month CPI data marked the first decline since the spring of 2020.

She also noted the falling price of gas, used cars, and airfare contributed to the easing of 📈Inflation in December.

Gas prices fell 9.4% in December and are down 1.5% from last year.

While gas prices decreased in December, food prices rose 0.3%.

Additionally, the shelter category — which accounts for about a third of the CPI — rose 0.8% in December and is up 7.5% from last year.