The Consumer Price Index fell another 0.7% after having its biggest one month drop ever last November. The core rate, excluding energy and food, remained unchanged. On a year over year basis, inflation is now running negative, down 0.1%, something not seen since the mid 1950's.
Here is a breakdown of the inflation benchmark to show you where costs are rising and falling most. For December, energy prices were down another 8.3% down and are now down 21.9% from one year ago.
- CPI: Down -0.74%
- Ex Food & Energy: Down -.02%
- Food: Down -.08%
- Energy: Down -8.32%
- Housing: Down -.03%
- Apparel: Down -.94%
- Transportation: Down -4.42%
- Medical Care: Up +.28%
- Recreation: Down -.20%
- Education & Communication: Up +.31%
- Other Goods & Svcs: Down -.03%
The unchanged core should give the Fed confidence that deflation is not the critical issue today and futures are pointing up. Some of the Dow stocks up over 2% in the pre-market include American Express , Caterpillar , Citigroup , Intel , Alcoa, and Home Depot .
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