WASHINGTON (AP) — Inflation cooled a bit last month as prices for gas and used cars fell, a sign that cost pressures are slowly easing.
Consumer prices rose 0.3% in December from the prior month, the Labor Department said Tuesday, the same as in November. Excluding the volatile food and energy categories, core prices rose 0.2%, also matching November’s figure. Increases at that pace, over time, would bring inflation closer to the Federal Reserve’s target of 2%.
Even as inflation has eased, the large price increases for necessities such as groceries, rent, and health care have left many American households feeling squeezed, turning “affordability” issues into high-profile political concerns. Food prices have jumped about 25% since the pandemic.
Tuesday’s report is the first clear measure of inflation since September. The six-week government shutdown last fall suspended the collection of price data used to compile the inflation rate, and the government didn’t issue a report in October and November’s figures were partially distorted by the impact of the closure.
Most prices in November were collected in the second half of the month, after the government reopened, when holiday discounts kicked in, which may have biased November inflation lower. And since rental prices weren’t fully collected in October, the agency that prepares the inflation reports used placeholder estimates in November, that may have biased prices lower, economists said.
