U.S CPI Remained Unchanged in December – January Report

According to the recent report of the Bureau of Labor Statistics, the U.S inflation for December 2011 remained unchanged and in annual terms the US inflation increased by 3.0%. The consumer price index without food and energy slightly rose by 0.1% during December and 2.2% in the past twelve months.   

The prime reason for the flat rate of the U.S. consumer price index was related to two different directions of the food index and energy index: the energy index sharply decreased by 1.3% (M-2-M) during December; in annual terms the energy index rose by 6.6%; among the energy products, the fuel oil prices led the fall with a 2.4% decrease during the last month of the year. Alternatively, the food index rose during December by 0.2% and by 4.7% in annual terms.

The core U.S inflation (CPI without energy and food) on the other hand slightly rose by 0.1% during December and by 2.2% during the past 12 months.

In the previous report regarding November 2011, the CPI also remained unchanged.

The chart below presents the development of the month to month percent changes of the U.S. Consumer price index during 2011.

U.S. inflation December 2011 Rate (percent) January 19 2012This news may affect the direction U.S dollar, and consequently also influence gold silver and prices.

Current gold price, short term futures (February 2012 delivery) is traded at $1,653.8 per t oz. a $6.1 decrease as of 15:03*.

Current Nymex crude oil price, short term futures (February 2012 delivery) is traded up by 0.57% to $101.16 per barrel as of 15:07*.

Euros to US Dollar exchange rate is currently traded up by 0.1672% to 1.2885 as of 15:19*.


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