U.S. consumer prices fell unexpectedly in December as the cost of energy dropped and services rose moderately, a trend suggesting inflation could be slow to rise toward the Federal Reserve's target.
Figures released Wednesday by the Labor Department reported the Consumer Price Index slipped 0.1% after being unchanged in November. Despite the drop last month, the CPI increased 0.7% in the 12 months through December, the biggest hike in a year, and following a 0.5% gain in November.
The year-over-year inflation rate is rising as the oil price-driven weak readings in 2015 drop out of the calculation. The boost from the so-called base effects could, however, be limited by lower oil prices, which are near 12-year lows.
Economists had forecast the CPI to be unchanged last month and rising 0.8% from a year ago.
