[quote]The numbers: Falling gasoline prices curbed inflation at the end of 2018, giving Americans a bigger financial cushion and granting the Federal Reserve more leeway in raising U.S. interest rates. The consumer price index slipped 0.1% in December to mark the first decline in nine months, the government said Friday. That matched the forecast of economists polled by MarketWatch. The increase in the cost of living over the past 12 months slowed to 1.9% from 2.2%, the first time it’s fallen below the key 2% mark since August 2017. The yearly rate had risen as high as 2.9% just six months ago. The drop in oil prices has masked inflationary pressures for other typical household expenses such as rent and car insurance. Another closely watched measure of inflation that strips out food and energy, known as the core rate, rose 0.2% last month. The yearly increase in core CPI remained unchanged at 2.2%, slightly above the Fed’s target. What happened: A steep drop in the cost of oil in the second half of 2018 caused price pressures to ease after a big runup earlier in the year. The cost of energy actually fell in 2018, reflecting the first yearly decline in almost 2½ years. That’s helping to keep overall inflation in the U.S. at bay. Aside from gasoline, prices also fell for plane tickets, used vehicles and prescription drugs in December. The cost of rent, groceries, household furnishings and medical expenses more broadly increased. Rising rent has been the biggest source of inflation in 2019. After adjusting for lower inflation, hourly wages jumped 0.5% in December to push the year-over-year gain to a healthy 1.1%. That’s the biggest increase in 2½ years, showing that most workers and their families are benefiting from the decline in gas prices and inflation more generally. Some economists think it’s inevitable prices will rise again given the nation’s extremely low unemployment rate and higher costs for raw materials in an economy running near its optimal speed. Others see little reason to believe inflation will move much higher in 2019, especially with a slowdown in the global economy that will keep the cost of oil and other key commodities low. The Federal Reserve, for its part, has to decide which view is right and determine how high to raise U.S. interest rates in response. If the Fed gets it wrong, the economy could suffer. For now, the Fed is leaning toward the view that inflation will remain contained.[/quote] https://www.marketwatch.com/story/consumer-inflation-falls-for-first-time-in-nine-months-due-to-lower-gas-prices-cpi-shows-2019-01-11 Hmmm. i wonder if the orangutan can be praised for this? Of course not, he can never be right, so sayeth the Progressives TL;DR. [spoiler] [quote]U.S. consumer prices fell for the first time in nine months in December amid a plunge in the cost of gasoline, but underlying inflation pressures remained firm as rental housing and healthcare costs rose steadily. The Labor Department said on Friday its Consumer Price Index dipped 0.1 percent last month, the first drop and weakest reading since March. The CPI was unchanged in November. In the 12 months through December, the CPI rose 1.9 percent after increasing 2.2 percent in November. Excluding the volatile food and energy components, the CPI increased 0.2 percent, advancing by the same margin for a third straight month. In the 12 months through December, the so-called core CPI rose 2.2 percent, matching November's increase. December's inflation readings were in line with economists' expectations. The Federal Reserve, which has a 2 percent inflation target, tracks a different measure, the core personal consumption expenditures (PCE) price index, for monetary policy. The core PCE increased 1.9 percent year-on-year in November after rising 1.8 percent in October. It hit 2 percent in March for the first time since April 2012. A sharp decline in oil prices amid an oversupply and slowing global economic growth is keeping overall inflation in check. Lower oil prices are also filtering through to core inflation via cheaper airline tickets. While the Fed has forecast two rate hikes this year, moderate inflation pressures likely support recent statements by several policymakers, including Chairman Jerome Powell, for caution about raising interest rates this year. Powell reiterated that view on Thursday, saying "especially with inflation low and under control we have the ability to be patient and watch patiently and carefully" while the central bank monitored economic data and financial markets for risks to growth. Minutes of the U.S. central bank's Dec. 18-19 policy meeting published on Wednesday showed "many" officials were of the view that the Fed "could afford to be patient about further policy firming." In December, gasoline prices dropped 7.5 percent after tumbling 4.2 percent in November. Food prices increased 0.4 percent, the biggest gain since May 2014, after rising 0.2 percent in November. Food consumed at home increased 0.3 percent in December after rising 0.2 percent in the prior month. Owners' equivalent rent of primary residence, which is what a homeowner would pay to rent or receive from renting a home, advanced 0.2 percent in December after rising 0.3 percent in November. Healthcare costs increased 0.3 percent last month after jumping 0.4 percent in November. The cost of hospital services surged 0.5 percent, but prices for prescription medication fell 0.4 percent and the cost of doctor visits was unchanged. Apparel prices were unchanged in December after dropping 0.9 percent in the prior month. Airline fares tumbled 1.5 percent.[/quote] https://www.cnbc.com/2019/01/10/consumer-price-index-december-2018.html Bwuahahahahahahahahahahahaha. You thought i would actually TL;DR a post. [/spoiler]