U.S. CPI accelerates to 3.4 pct in December amid rising shelter, energy prices

WASHINGTON, Jan. 11 (Xinhua) -- U.S. consumer inflation in December 2023 accelerated to 3.4 percent from a year ago, after dropping to 3.1 percent in the previous month, amid rising shelter and energy prices, the U.S. Labor Department reported Thursday.

The Consumer Price Index (CPI) increased 0.3 percent in December on a seasonally adjusted basis, after rising 0.1 percent in November, according to the department's Bureau of Labor Statistics.

The index for shelter continued to rise in December, contributing over half of the monthly all-items increase. The energy index rose 0.4 percent over the month as increases in the electricity index and the gasoline index more than offset a decrease in the natural gas index.

The energy index rose 0.4 percent in December, after decreasing 2.3 percent in November. The gasoline index increased 0.2 percent in December, following a 6.0 percent decrease in the previous month. The index for electricity increased 1.3 percent over the month.

The latest inflation report showed that the so-called core CPI, which excludes food and energy, edged up 0.3 percent in December, the same monthly increase as November.

The shelter index increased 6.2 percent over the last year, accounting for over two thirds of the total increase in all items less food and energy index.

At a press conference in December, Fed Chair Jerome Powell said that the central bank is "making real progress" on inflation, but "we still have a way to go."

"No one is declaring victory. That would be premature. And we can't be guaranteed of this progress," Powell said. "So, we're moving carefully in making that assessment of whether we need to do more or not."