US consumer prices drop slightly in December but remain at record highs

WASHINGTON - The year 2022 ended with inflation in the United States abnormally high, despite falling a hair in December.

The US Consumer Price Index fell a very modest 0.1 percent in December, according to US Labor Department data released Thursday.

The index measures the cost of a broad array of consumer goods and is closely watched by the US Federal Reserve as the central bank sets interest rates.

Thursday's figures were in line with estimates from economists surveyed by Dow Jones.

While the decrease amounted to the biggest month-on-month inflation drop since April 2020, during the lockdowns that wreaked havoc on the US economy, inflation remains the worst in 40 years.

A sharp drop in gasoline prices accounted for most of the tiny decline in the index. Costs at the pump dropped 9.4 percent month on month and currently stand at 1.5 percent lower than the same period last year.

But at the same time, gas prices are still significantly higher than two years ago.

The cost of fuel oil also fell 16.6 percent month-on-month.

Food prices increased in December 0.3 percent month on month, gaining from already record highs. Shelter increased 0.8 percent month-on-month for a gain of 7.5 percent from more than a year ago.