Consumer Price Index Continues to Drop
The Consumer Price Index for all urban consumers (CPI-U) decreased 1.0 percent in December 2008, before seasonal adjustment, according to a recent report from the U.S. Department of Labor’s Bureau of Labor Statistics. On a seasonally adjusted basis, the CPI-U decreased 0.7 percent in December, the third consecutive decline, driven by declining energy prices, particular for gas.
For the 12-month period ending December 2008, the CPI-U rose 0.1 percent. This was the smallest calendar year increase since a 0.7 percent decline in 1954 and compares with a 4.1 percent increase for the 12 months ended December 2007.