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News World Americas US politics Biden hails ‘good news’ as rate of US Inflation falls for December as fuel prices drop However, food prices continue to rise
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Your support makes all the difference. Close Read more US inflation dropped by 0.1 per cent for the month of December as fuel prices fell, which compensated for increased food and housing prices. President Biden hailed the “good news about the economy”.
“For the sixth month in a row, inflation has come down,” Mr Biden said, adding that the progress gives “families some real breathing room.”
The Bureau of Labor Statistics released its monthly Consumer Price Index report on Thursday detailing that inflation also rose 6.5 per cent in the past 12 months.
Fuel prices dropped 9.4 per cent for the month of December, while the energy index overall fell 4.5 per cent that month.
But food prices increased 0.3 per cent and the home index rose 0.2 per cent. The index for meat, poultry, fish and eggs jumped 1.0 per cent, with the index for eggs rising 11.1 per cent. The index for other food at home rose 0.4 per cent in December, but the index for dairy and related products fell by 0.3 per cent.
Meanwhile, in the past 12 months, the food index rose 10.4 per cent, with the food at home index jumping 11.8 per cent in the same span of time.
The index for all items except for food and energy also rose 0.3 per cent, which came after it rose 0.2 per cent in November.
The index for shelter increased 0.8 per cent, while the index for rent increased by the same rate.
The news comes in the second week of Republican control of the House of Representatives. Republicans won the House majority largely because of concerns of rising prices at the gas pump and at the grocery store.
It also comes as President Joe Biden seeks to tout his economic record as he weighs whether to seek a second term as president. A recent CBS News/YouGov poll found that 76 per cent of people surveyed said “lowering inflation” should be a top priority for the new Congress.
But Democrats and Republicans were split on priorities, as 89 per cent of people who voted Republican in the 2022 midterms said that Congress should prioritise lowering inflation while 65 per cent of people who voted for Democrats said it should be a high priority, behind protecting Social Security and Medicare, addressing climate change and protecting abortion access.
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