December CPI Report

The December CPI report is out. For the last month of 2021, headline inflation increased by 0.47% and the core rate increase by 0.55%.

Over the course of 2021, the headline CPI rose by 7.12%. The core rate rose by 5.49%.

That’s the highest 12-month headline rate since June 1982. It’s the highest 12-month core rate since February 1991.

Shelter costs, which make up about one-third of the total rose 0.4% for the month and 4.1% for the year. That was the fastest pace since February 2007.

Used vehicle prices, which have been a major component of the inflation increase during the pandemic due to supply chain constraints that have limited new vehicle production, rose another 3.5% in December, bringing the increase from a year ago to 37.3%.

Conversely, energy prices mostly declined for the month, falling 0.4% as fuel oil was down 2.4% and gasoline fell 0.5%. Still, the complex as a whole rose 29.3% in the 12-month period, including a gain of 49.6% for gasoline.

Here’s a look at the seasonally-adjusted monthly headline rate of inflation. Of the last 10 months, December had the eighth-highest inflation rate.

Posted by on January 12th, 2022 at 8:47 am


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