Dec. US CPI Flat at 2.7% on Yr; Gasoline Index Dn


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- The U.S. Consumer Price Index (CPI) grew 2.7% 
year-on-year in December, unchanged from the prior month and in line with Wall 
Street economists' forecasts, according to Bureau of Labor Statistics (BLS) 
data released Tuesday (1/13).

   The all-items less food and energy index, so-called core inflation, was also 
unchanged at 2.6% year-on-year in December, versus economists' forecast of a 
2.7% increase.

   The 2.7% annual expansion in headline CPI indicates stabilizing inflation 
despite U.S. price growth remaining well above the Federal Reserve's long-term 
target of 2%. The CPI is one of the indicators the central bank uses for 
determining interest rates, which it cut three times last year, most recently 
on December 10.

   The Fed's next rate decision is on January 28, with most economists on Wall 
Street expecting rates to remain unchanged in a range of between 3.5% to 3.75%. 
In line with that, the CME FedWatch Tool showed a 95% probability of no change 
to rates in January.

   The CPI data also showed the gasoline sub-index contracting by 0.5% in 
December after growing 3.0% in November.  For all of 2025, the gasoline index 
fell 3.4%, the BLS reported. Separately, the American Automobile Association 
reported a national average gasoline price of $2.89 per gallon in late 
December, the lowest for a specific month since 2020.

   The index for fuel oil, a key source for heating, also dropped in December, 
down 1.5% from the previous month, but up 7.4% year-on-year. The utility 
(piped) gas service index jumped by 4.4%.  

   Aside from gasoline and fuel oil, the used cars and trucks index was the 
only subindex registering a decrease last month, with a drop of 1.1%.

   Price increases were, meanwhile, almost across the board, with gains in 
food, new vehicles, apparel, medical care, shelter and transportation.




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