Following deflationary prints in import prices and producer prices, core consumer prices came in modestly hotter than expected. Core CPI printed +1.8% YoY – highest since April 2017 – as shelter costs re-acclerate.
Headline SPI rose just 0.1% MoM (as expected) but notable slower than the 0.4% MoM rise in November.
The index for all items less food and energy increased 0.3 percent in December, its largest increase since January 2017.
The recent (silver lining) trend in lower shelter cost growth ended with a modest rise MoM and YoY in both Shelter and Rent inflation…
Along with the shelter index, the indexes for medical care, used cars and trucks, new vehicles, and motor vehicle insurance were among those that increased in December.
The indexes for apparel, airline fares, and tobacco all declined over the month.