The annual rate of US consumer inflation has dropped below 2% for the first time since July 2017. While the annual inflation rate had trended higher through the 2018 financial year, a string of soft inflation results from July onwards has brought the consumer inflation rate from close to 3% to back below 2% in less than six months.
Consumer price index (CPI) figures released by the Bureau of Labor Statistics indicated seasonally-adjusted consumer prices fell by 0.1% in December, down from November’s flat result but in line with consensus expectations. On a 12-month basis, the consumer inflation rate slowed to 1.9% after falling to 2.2% in November. The primary driver of the fall was a substantial fall in gasoline prices.
