Inflation in the United States went up by 0.3 per cent last month, based on the December 2023 Consumer Price Index for All Urban Consumers (CPI-U).

The 0.3 rise follows a 0.1 per cent increase in November 2023. Over the past 12 months, the all-items index showed a 3.4 per cent increase. The upward movement was largely driven by a continued rise in the shelter index, which contributed to more than half of the overall monthly increase.

Additionally, the energy index increased by 0.4 per cent, driven by higher electricity and gasoline prices, although it was partially offset by a decrease in the natural gas index. The food index also saw a 0.2 per cent increase in December, mirroring the November trend with the food at home index rising by 0.1 per cent and the food away from home index increasing by 0.3 per cent.

Disaggregated performance

In December, the all items index less food and energy saw a 0.3 per cent increase, mirroring the same monthly rise observed in November. Key contributors to this uptick included increased indexes for shelter, motor vehicle insurance, and medical care. 

On the other hand, the indexes for household furnishings and operations, as well as personal care, experienced decreases over the month. In the 12 months ending in December, the all-items index rose 3.4 per cent, surpassing the 3.1 percent rise observed for the 12 months ending in November. 

Meanwhile, the all items less food and energy index rose by 3.9 per cent over the last 12 months, slightly lower than the 4.0 per cent increase recorded for the 12 months ending in November. During the same period, the energy index went down by 2.0 per cent, contrasting with a 2.7 per cent increase in the food index over the last year.