US CPI declines less than expected in December

FXStreet (London) - The Consumer Price Index for All Urban Consumers declined 0.4 percent in December on a seasonally adjusted basis, according to the US Bureau of Labor Statistics. Over the last 12 months, the all items index increased 0.8 percent before seasonal adjustment, down from 1.3 percent in November, but stronger than consensus expectations of a decline to 0.7 percent.

Fuel prices as expected were the leading driver of price declines. The gasoline index continued to fall sharply, declining 9.4 percent and leading to the decrease in the seasonally adjusted all items index. The fuel oil index also fell sharply, and the energy index posted its largest one-month decline since December 2008, although the indexes for natural gas and for electricity both increased. The food index, in contrast, rose 0.3 percent, its largest increase since September.