US core consumer prices post biggest gain in 11 months

Washington

UNDERLYING US consumer prices recorded their largest increase in 11 months in December, amid strong gains in the cost of rental accommodation and healthcare, bolstering expectations that inflation will gain momentum this year.

The Labor Department said its Consumer Price Index, excluding the volatile food and energy components, rose 0.3 per cent last month, also as prices for new motor vehicles, used cars and trucks and motor vehicle insurance increased.

That was the biggest advance in the so-called core CPI since January and followed a 0.1 per cent gain in November. Core CPI increased 1.8 per cent in the 12 months through December, picking up from 1.7 per cent in November. Economists polled by Reuters had forecast core CPI rising 0.2 per cent month-on-month and holding steady at…