WASHINGTON (AP) — Rising U.S. consumer prices moderated again last month, bolstering hopes that inflation’s grip on the economy will continue to ease this year and possibly require less drastic action by the Federal Reserve to control it.
Inflation declined to 6.5% in December compared with a year earlier, the government said Thursday. It was the sixth straight year-over-year slowdown, down from 7.1% in November. On a monthly basis, prices actually slipped 0.1% from November to December, the first such drop since May 2020.
kAm%96 D@7E6C C625:?8D 255 E@ 8C@H:?8 D:8?D E92E E96 H@CDE :?7=2E:@? 3@FE :? 7@FC 564256D :D DE625:=J H2?:?8] v2D AC:46D[ H9:49 92G6 EF>3=65[ 2C6 =:<6=J E@ <66A =@H6C:?8 @G6C2== :?7=2E:@? :? E96 4@>:?8 >@?E9D] $FAA=J 492:? D?2C=D 92G6 =2C86=J F?C2G6=65] %92E’D 96=A:?8 C65F46 E96 4@DE @7 8@@5D C2?8:?8 7C@> 42CD 2?5 D9@6D E@ 7FC?:EFC6 2?5 DA@CE:?8 8@@5D]k^Am
kAm“%9:D :D E96 DE2CE:?8 A@:?E 7@C >F49 36EE6C :?7=2E:@? C2E6D[ H9:49 D9@F=5 3@=DE6C 4@?DF>6C 2?5 3FD:?6DD 4@?7:56?46[” D2:5 y@6 qCFDF6=2D[ 49:67 64@?@>:DE 2E E2I 4@?DF=E2?ED #$|]k^Am
kAms646>36C’D =@H6C :?7=2E:@? C625:?8 >2<6D :E =:<6=:6C E92E E96 u65 H:== D=@H :ED :?E6C6DE C2E6 9:<6D :? E96 4@>:?8 >@?E9D] %96 u65 >2J C2:D6 :ED 36?49>2C< C2E6 3J ;FDE 2 BF2CE6C\A@:?E 2E :ED ?6IE >66E:?8[ H9:49 6?5D u63] `[ 27E6C 2 92=7\A@:?E :?4C62D6 :? s646>36C 2?5 7@FC E9C66\BF2CE6C\A@:?E 9:<6D 367@C6 E92E]k^Am
kAmu65 @77:4:2=D 92G6 D:8?2=65 E92E E96J :?E6?5 E@ 3@@DE E96:C <6J C2E6 23@G6 dT — 2 >@G6 E92E H@F=5 =:<6=J <66A >@CE8286 C2E6D 9:89[ 2=@?8 H:E9 E96 4@DED @7 2FE@ =@2?D 2?5 3FD:?6DD 3@CC@H:?8] %96 u65’D 9:896C C2E6D 2C6 :?E6?565 E@ D=@H DA6?5:?8[ 4@@= E96 64@?@>J 2?5 4FC3 :?7=2E:@?]k^Am
kAmqFE :7 :?7=2E:@? 4@?E:?F6D E@ 62D6[ E96 u65 4@F=5 DFDA6?5 :ED C2E6 9:<6D 27E6C E92E[ D@>6 64@?@>:DED D2J[ @C :>A=6>6?E ;FDE @?6 255:E:@?2= 9:<6 :? |2C49 2?5 E96? A2FD6] uFEFC6D AC:46D D9@H E92E :?G6DE@CD 6IA64E E96 u65 E@ E96? 4FE C2E6D 3J J62C’D 6?5[ 2=E9@F89 >:?FE6D 7C@> :ED s646>36C >66E:?8 ?@E65 E92E ?@?6 @7 E96 `h A@=:4J>2<6CD 7@C6D66 2?J C2E6 4FED E9:D J62C]k^Am
kAm“x7 24EF2= :?7=2E:@? :D EC6?5:?8 5@H?H2C5[ E96 u65 42? E2<6 >@C6 4@>7@CE E92E :E’D =2?565 E96 64@?@>J :? 2 8@@5 A=246[” D2:5 s2=66A $:?89[ 49:67 8=@32= 64@?@>:DE 2E !vx| u:I65 x?4@>6 2?5 2 7@C>6C u65 DE2776C] $:?89 6IA64ED E96 u65 E@ C2:D6 :ED 36?49>2C< C2E6 3J 2 BF2CE6C\A@:?E 2E 6249 @7 :ED ?6IE EH@ >66E:?8D 2?5 E96? DE@A H:E9 :ED <6J C2E6 ;FDE 36=@H dT]k^Am
kAmx?7=2E:@? 2=D@ 92D 366? 5C@AA:?8[ E9@F89 E@ 2 =6DD6C 568C66[ :? tFC@A6 2?5 :? E96 &?:E65 z:?85@>] p7E6C >@?E9D @7 C:D:?8 AC:46D[ 2??F2= :?7=2E:@? :? E96 `h 4@F?EC:6D E92E FD6 E96 6FC@ 4FCC6?4J 76== 7@C E96 D64@?5 DEC2:89E >@?E9 :? s646>36C 3FE DE:== 9:E 2 A2:?7F= h]aT] %92E H2D 5@H? 7C@> }@G6>36C’D `_]`T[ H:E9 6?6C8J AC:46D 92G:?8 5C@AA65 7C@> DF>>6CE:>6 A62<D 3FE DE:== 9:896C E92? ?@C>2=]k^Am
kAm(9:=6 2??F2= :?7=2E:@? :? E96 &]z] 62D65 E@ `_]fT :? }@G6>36C 7C@> ``]`T 2 >@?E9 62C=:6C[ :E’D DE:== DEF4< ?62C 2 c_\J62C 9:89[ H:E9 7@@5 2?5 6?6C8J AC:46D DBF66K:?8 4@?DF>6CD] r6?EC2= 32?<D :? tFC@A6 2?5 E96 &]z] 2C6 DE:== C2:D:?8 :?E6C6DE C2E6D 3FE 92G6 D=@H65 E96:C A246]k^Am
kAmx? C6>2C<D %9FCD52J >@C?:?8[ !C6D:56?E y@6 q:56? DF886DE65 E92E E96 “52E2 :D 4=62C” E92E &]$] :?7=2E:@? :D 5C@AA:?8]k^Am
kAm“xE’D 4@>:?8 5@H? :? p>6C:42 >@?E9 27E6C >@?E9[ 8:G:?8 72>:=:6D D@>6 C62= 3C62E9:?8 C@@>[” 96 D2:5]k^Am
kAmq:56? :D :?4C62D:?8=J 7C2>:?8 E96 64@?@>:4 492==6?86 @7 :?7=2E:@? :? A@=:E:42= E6C>Di w6 H2C?65 E92E w@FD6 #6AF3=:42?D 4@F=5 H@CD6? :?7=2E:@? 2?5 :?6BF2=:EJ H:E9 E96:C 3:==D E@ C65F46 x#$ 7F?5:?8 2?5 6G6? 6=:>:?2E6 E96 E2I 286?4J 2?5 :?DE625 =6GJ 2 ?2E:@?2= D2=6D E2I E92E H@F=5 5:DAC@A@CE:@?2E6=J 9:E E96 >:55=6 4=2DD]k^Am
kAmtI4=F5:?8 G@=2E:=6 7@@5 2?5 6?6C8J 4@DED[ D@\42==65 4@C6 AC:46D C@D6 d]fT :? s646>36C 7C@> 2 J62C 62C=:6C[ D=@H6C E92? eT :? }@G6>36C] uC@> }@G6>36C E@ s646>36C[ 4@C6 AC:46D :?4C62D65 ;FDE _]bT[ 27E6C C:D:?8 _]aT :? }@G6>36C] x? E96 A2DE E9C66 >@?E9D[ 4@C6 :?7=2E:@? 92D D=@H65 E@ 2? 2??F2= C2E6 @7 ;FDE b]`T]k^Am
kAmtG6? 2D :?7=2E:@? 8C25F2==J D=@HD[ :E C6>2:?D 2 A2:?7F= C62=:EJ 7@C >2?J p>6C:42?D[ 6DA64:2==J H:E9 DF49 ?646DD:E:6D 2D 7@@5[ 6?6C8J 2?5 C6?ED 92G:?8 D@2C65 @G6C E96 A2DE `g >@?E9D]k^Am
kAmvC@46CJ AC:46D C@D6 _]aT 7C@> }@G6>36C E@ s646>36C[ E96 D>2==6DE DF49 :?4C62D6 :? ?62C=J EH@ J62CD] $E:==[ E9@D6 AC:46D 2C6 FA ``]gT 7C@> 2 J62C 28@]k^Am
kAmq69:?5 >F49 @7 E96 564=:?6 :? @G6C2== :?7=2E:@? 2C6 72==:?8 82D AC:46D] %96 ?2E:@?2= 2G6C286 AC:46 @7 2 82==@? @7 82D 92D DF?< 7C@> 2 Sd :? yF?6 E@ Sb]af 2D @7 (65?6D52J[ 244@C5:?8 E@ ppp]k^Am
kAmp=D@ 4@?EC:3FE:?8 E@ E96 D=@H5@H? 2C6 FD65 42C AC:46D[ H9:49 76== 7@C 2 D:IE9 DEC2:89E >@?E9 :? s646>36C] }6H 42C AC:46D 564=:?65[ E@@] %96 4@DE @7 2:C=:?6 E:4<6ED 2=D@ 5C@AA65]k^Am
kAm$E:==[ 7@C >@DE p>6C:42?D[ E96 u65’D C2E6 9:<6D 92G6 >256 2FE@ =@2?D >F49 >@C6 6IA6?D:G6[ E96C63J ?682E:?8 >@DE @7 E96 36?67:E E@ 4@?DF>6CD 7C@> E96 5C@A :? FD65\42C AC:46D]k^Am
kAmy677 $49C:6C[ AC6D:56?E @7 $49C:6C pFE@>@E:G6[ 32D65 :? ~>292[ }63C2D<2[ D2:5 9:896C =@2? C2E6D 92G6 A2CE:4F=2C=J 4FE :?E@ D2=6D @7 =FIFCJ 42CD]k^Am
kAm“%96 8@@5D ?6HD :D AC:46D 2C6 5@H?[ E96 325 ?6HD :D E92E C2E6D 2C6 FA[ 2?5 E92E :D 5C:G:?8 A6@A=6 2H2J[” $49C:6C D2:5] w6 6DE:>2E65 E92E 2FE@ =@2? C2E6D 92G6 C:D6? 3J c\d A6C46?E286 A@:?ED :? E96 A2DE J62C]k^Am
kAm|@DE 64@?@>:DED AC65:4E E92E :?7=2E:@? H:== 4@?E:?F6 62D:?8 :? E96 4@>:?8 >@?E9D[ 5C:G6? 5@H? 3J 4962A6C 82D@=:?6 2?5 724E@CJ 8@@5D]k^Am
kAmw@FD:?8 4@DED 2C6 DE:== DFC8:?8[ H:E9 2A2CE>6?E C6?E2= 4@DED ;F>A:?8 _]gT 7C@> }@G6>36C E@ s646>36C 2?5 g]bT 4@>A2C65 H:E9 2 J62C 62C=:6C] %96 J62C\@G6C\J62C :?4C62D6 H2D E96 72DE6DE :? 7@FC 564256D]k^Am
kAmqFE C62=\E:>6 >62DFC6D @7 ?6H =62D6D EC24<65 3J C62= 6DE2E6 52E2 7:C>D =:<6 +:==@H 2?5 pA2CE>6?E {:DE D9@H E92E C6?E2= AC:46 :?4C62D6D 2C6 D=@H:?8] pD 2 C6DF=E[ E96 8@G6C?>6?E’D >62DFC6 @7 C6?ED[ H9:49 =28 369:?5 AC:G2E6 >62DFC6D[ D9@F=5 DE2CE E@ 564=:?6 =2E6C E9:D J62C]k^Am
kAmu65 r92:C y6C@>6 !@H6== :D 7@4FD65[ :? A2CE:4F=2C[ @? E96 4@DE @7 D6CG:46D 6I4=F5:?8 9@FD:?8] !C:46 :?4C62D6D :? E9:D 42E68@CJ 42? E2<6 =@?86C E@ 7256[ 3642FD6 E96J’C6 962G:=J 5C:G6? 3J =23@C\:?E6?D:G6 D64E@CD =:<6 C6DE2FC2?ED[ 9@E6=D[ 962=E9 42C6 2?5 65F42E:@?] (286D :? >@DE @7 E9@D6 :?5FDEC:6D 92G6 366? 2446=6C2E:?8[ H9:49 42? DAFC :?7=2E:@? :7 6>A=@J6CD E96? 492C86 >@C6 E@ 4@G6C E96:C 9:896C =23@C 4@DED]k^Am
kAmx? s646>36C[ D6CG:46D AC:46D 6I4=F5:?8 9@FD:?8 C@D6 _]bT[ 5@H? 7C@> 2G6C286 >@?E9=J :?4C62D6D @7 23@FE _]dT E9:D J62C] qFE E96J’C6 72==:?8 @?=J D=@H=Ji $6CG:46D AC:46D 2C6 DE:== FA e]aT 7C@> 2 J62C 28@[ @77 @?=J D=:89E=J 7C@> 2 C646?E A62< @7 e]dT]k^Am
kAm|2?J 64@?@>:DED 6IA64E :?7=2E:@? E@ 72== E@ C@F89=J bT @C cT =2E6C E9:D J62C[ E9@F89 :E 4@F=5 A=2E62F 2E E92E =6G6= :7 D6CG:46D AC:46D C6>2:? 9:89] u65 @77:4:2=D >2J 49@@D6 E@ <66A E96:C <6J C2E6 23@G6 dT F?E:= :?7=2E:@? 86ED 4=@D6C E@ :ED aT E2C86E]k^Am
kAmu65 @77:4:2=D[ 7@C E96:C A2CE[ 92G6 D:8?2=65 E92E E96J :?E6?5 E@ <66A E96:C <6J C2E6 E92E 9:89 2== J62C]k^Am
kAm{2DE H66<’D ;@3D C6A@CE 7@C s646>36C 3@=DE6C65 E96 A@DD:3:=:EJ E92E 2 C646DD:@? 4@F=5 36 2G@:565] tG6? 27E6C E96 u65’D D6G6? C2E6 9:<6D =2DE J62C 2?5 H:E9 :?7=2E:@? DE:== 9:89[ 6>A=@J6CD 25565 2 D@=:5 aab[___ ;@3D :? s646>36C[ 2?5 E96 F?6>A=@J>6?E C2E6 76== E@ b]dT[ >2E49:?8 E96 =@H6DE =6G6= :? db J62CD]k^Am
kAmpE E96 D2>6 E:>6[ 2G6C286 9@FC=J A2J 8C@HE9 D=@H65[ H9:49 D9@F=5 =6DD6? AC6DDFC6 @? 4@>A2?:6D E@ C2:D6 AC:46D E@ 4@G6C E96:C 9:896C =23@C 4@DED]k^Am
kAm“%96 6G:56?46 E92E E96 &]$] 64@?@>J >2J D<:CE C646DD:@? :D >@F?E:?8[” $:?89 D2:5]k^Am