Inflation continued to ease in December as data released Thursday by the Bureau of Labor Statistics indicated the Consumer Price Index is continuing to decline.
For the 12-month period ending in December, the Consumer Price Index was 6.5%, which is down from a peak of 9.1% in the summer. Month over month, the CPI actually declined .1% in December as energy costs fell.
November to December 2022 marked the first time the CPI actually declined month over month since April to May 2020.
The price of food remains elevated as overall food costs went up .3% from November to December, ending the year at 10.4%. Eggs alone jumped over 11 percent in December and ended the year being 59.9% more expensive from the end of 2022 compared to the beginning.
Many commodities, such as apparel and recreation goods, have dropped in price in recent months.
The Consumer Price Index increased .9% in the last half of 2022, compared to 5.2% at the start of 2022.
The drop in inflation comes amid rising interest rates. The Consumer Price Index is down from 8.2% just three months ago and a high of 9.1% in June.
The Federal Reserve said its goal is to reduce inflation to around 2%. While the Federal Reserve raised interest rates numerous times in 2022, it’s unclear whether the Fed will continue with rate hikes.