MNI DATA IMPACT: US Dec CPI +0.2%; Core Up +0.1%>

--Owners Equivalent Rent +0.2%; Energy Prices Up +1.4%

By Brooke Migdon 

     WASHINGTON (MNI) - The December CPI data were weaker than expected, 

but year/year inflation still accelerated, coming in at the fastest pace 

in over a year, data released Tuesday by the Bureau of Labor Statistics 

showed. 

     Overall CPI increased 0.2% m/m, below expectations for a 0.3% gain. 

Core prices rose 0.1%, also below projections for a 0.2% increase. 

     The headline year/year rate accelerated to 2.3% from 2.1% in 

November - the first y/y figure above 2% in exactly a year and the 

highest since October 2018. Excluding food and energy, the year/year 

rate was also 2.3%, matching both November's and October's pace. 

     Here are some of the key takeaways: 

     - The core CPI reading was 0.219% unrounded, on the higher end of a 

0.2% reading.

     - The large owners' equivalent rent category increased 0.2%, 

supporting a steady 3.3% y/y gain, same as November and October.

     - Energy prices grew by 1.4%, rebounding after decelerating by 0.8% 

in November. Gasoline prices, which account for 4.0% of the total CPI 

basket, rose 2.8%, as did motor fuel. 

     - Food prices rose 0.2% and food away from home prices rose by 

0.3%, bringing the y/y rate up to 3.1%. Excluding only food, CPI would 

have still been up 0.2%, slowing from 0.3% in November. 

     - Apparel prices accelerated in December, rising 0.4% after 

increasing 0.1% in November. The medical care index also rose 0.6% 

after increasing by 0.3% in November. It rose 4.6% in 2019, above the 

2.0% rise in 2018 and the largest December-to-December advance since 

2007.                                                        

     ** MNI Washington Bureau: 202-371-2121 ** 

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