CPI Declines in December 2022 for First Time in 12 Months

On January 12th, 2023, the U.S. Bureau of Labor Statistics (BLS) news release of the Consumer Price Index for All Urban Consumers (CPI-U) indicated that in December 2022, the index declined 0.1 percent on a seasonally adjusted basis. Since peaking for the past year in June with a 1.3 percent increase, the second half of the year has shown signs of U.S. inflation easing.  Over the last 12 months, the all items index increased 6.5 percent before seasonal adjustment, representing 8.5 percent and 28.6 percent declines from the 7.1 percent increase in November and 9.1 percent increase in June respectively. In response to the news,” U.S. stocks climbed and investors bought U.S. Treasurys, lifting bond prices and weighing on yields.” It is anticipated that the easing of inflation for the 6th consecutive month will likely keep the Federal Reserve “on track to reduce the size of interest-rate increase to a quarter-percentage-point at their next meeting that concludes on Feb. 1, down from a half-percentage-point increase in December.”

Source:    https://www.wsj.com/articles/us-inflation-december-2022-consumer-price-index-1167348541