The month-on-month decrease was mainly due to energy prices, which decreased by 4.5 percent compared to November. Gasoline prices fell by 9.4 percent month-on-month in December and were down 1.5 percent year-on-year.
Last June, the U.S. inflation rate climbed to 9.1 percent, the highest since November 1981. But it has been slowing since then, easing upward pressure on U.S. interest rates.
In December, the US Central Bank (Fed) raised its key interest rate by half a percentage point to a range of 4.25 to 4.50 percent in an effort to fight inflation. Although it slowed down the pace of interest rate increases compared to previous meetings, it also signaled that interest rates will continue to rise for some time.
The Fed’s key rate is now at its highest level since 2007. The Fed will decide on monetary policy again in early February.
Inflation in the eurozone unexpectedly fell significantly in December and is at 9.2 percent
Economic
