U.S. Inflation Held Steady at 0.3% in December

The U.S. Consumer Price Index (CPI) increased 0.3% in December, with shelter costs driving the monthly rise. Over the past 12 months, the all items index rose 2.7%, matching November's increase. Food prices jumped 0.7%, led by gains in groceries and dining out. Energy prices edged up 0.3%, with natural gas rising 4.4% but gasoline falling 0.5%. Core CPI which excludes food and energy, climbed 0.2% in December. Shelter costs rose 0.4%, while recreation (1.2%), airline fares (5.2%), medical care (0.4%), apparel (0.6%), personal care (0.4%) and education (0.2%) all increased. However, communication, used cars/trucks and house hold furnishings and operations prices declined. For the year, core CPI rose 2.6%, with shelter, medical care, household furnishings and operations, personal care and recreation contributing to the increase.