U.S. consumer prices increase moderately in December

• U.S consumer prices rose slightly in December and monthly underlying inflation pressures retreated, which could allow the Federal Reserve to keep interest rates unchanged at least through this year.
• The Labor Department said on Tuesday its consumer price index increased 0.2% last month after climbing 0.3% in November. The monthly increase in the CPI has been slowing since jumping 0.4% in October. In the 12 months through December, the CPI rose 2.3% after gaining 2.1% in the 12 months through November.
• Excluding the volatile food and energy components, the CPI edged up 0.1% after gaining 0.2% in November. The so-called core CPI was up by an unrounded 0.1133% last month compared to 0.2298% in November.
• Underlying inflation in December was held back by declines in the costs of used cars and trucks, airline tickets and household furnishing and operations, which offset increases in the prices of healthcare, apparel, new motor vehicles, recreation, and motor vehicle insurance.

(Source: Reuters)