Washington — U.S. consumer inflation rose by a mere 0.1 in December as the lacklustre economy had the effect of holding prices in line, creating a healthier climate for shoppers. It marked the second straight month that the Consumer Price Index, the U.S. government's most closely watched inflation gauge, crept up by 0.1 per cent, the U.S. Labor Department said Thursday. The report provided fresh evidence that inflation remains under control and isn't a problem for the economy, which is struggling to get back on sure footing after being knocked over by the 2001 recession.
For consumers, one of the few benefits of a sputtering economy is low inflation. Companies — uncertain about demand for their products and services — usually find it difficult to boost prices. Excluding energy and food prices, which can swing widely from month to month, the "core" rate of inflation rose by just 0.1 per cent in December, down from a 0.2 per cent rise in November, suggesting that most other prices are remaining well behaved. The latest reading on inflation was better than analysts expected. They were predicting a 0.2 percent rise in the overall CPI. The showing on the "core" inflation rate matched expectations.//www.theglobeandmail.com