December 2022 CPI report: Which products increased and decreased the most? Food, energy, transportation...
The US Labor Department released inflation numbers for December on Thursday and consumer prices unexpectedly fell for first time since May 2020.
The US Department of Labor and Statistics released inflation numbers for December on Thursday and consumer prices unexpectedly fell for first time since May 2020, dropping -0.1 percent from the previous month. While food prices continued to increase month-on-month, the pace was slower than November. Energy prices showed the biggest decreases.
Year-on-year consumer inflation met expectations with prices rising 6.5 percent in the 12 months through December. That number was down from 7.1 percent in November and the smallest increase since October 2021. While inflation is significantly below the June peak of 9.1 percent, it is still well-above the 2 percent target of the Federal Reserve but signals that price increases are on a downward trend.
Core inflation, minus the volatile food and energy components, advanced 5.7 percent year-on-year and 0.3 percent over the previous month. That was lower than 6 percent in the 12 months through November reported last month but slightly higher than the 0.2 percent for the month-on-month reading.
Which products increased the most?
Energy prices might be down in December, but energy service prices saw the biggest increases from the previous month. Electricity rose by 1.0 percent and utility gas service increased 3.0 percent, compared to -0.2 percent and -3.5 percent respectively in November.
The rise in food prices at grocery stores slowed last month, up 11.8 percent year-on-year through December, cooling from 0.5 percent to 0.3 percent. Three of the six major food groups at grocery stores were up last month with the price for meats, poultry, fish, and eggs rising from -0.2 percent in November to 1.0 percent the following month.
An outlier in the food group was the price of eggs. After dropping from 10.1 percent rise in October to 2.3 percent in November, prices spiked again in December by 11.1 percent.
Meanwhile fruits and vegetables as well as dairy and related products decreased by 0.6 percent and 0.3 percent, respectively. The price of cereals and bakery products was unchanged from the previous month.
Which products decreased the most?
Energy prices continue their downward trend in December. As any motorist would notice driving past a gas station the price of motor fuel in general was down by 9.2 percent compare to the 2.1 percent drop the month before. As winter sets in, fuel oil was dearer than it was last December up 41.5 percent year-on-year, but down 16.6 percent from the previous month.
Those in the market for a used car or truck were able to take advantage of lower prices as dealers stuck with excess inventory offered better deals. That was the result of bottlenecks in supply chains ironing out and the supply of new motor vehicles increasing. The price decrease slowed in December from -2.9 percent the prior month returning to slightly more than the -2.4 percent registered in September and October. In the 12 months through December the price of used cars and trucks is down 8.8 percent.