What's the opposite of inflation? Deflation, and that's exactly what happened in December, according to the latest consumer price index (CPI). Prices fell 0.1 percent last month, bringing the year-over-year rate to 6.5 percent, down from a peak of 9.1 percent last June.
Here are the highlights:
Energy contributed the biggest share to the decline, with prices falling 4.5 percent. Under that category, fuel oil saw the biggest drop, falling 16.6 percent.
After energy, automobiles saw the most deflation in December. The price of new vehicles fell 0.1 percent, and the price of used vehicles fell 2.5 percent.
Food prices, meanwhile, ticked up 0.3 percent. That's the smallest increase in the last six months. Shelter costs also jumped a sizable 0.8 percent, up from 0.6 percent in November.
The report comes as a debate rages over whether the U.S. economy can achieve a so-called landing after several large rate hikes from the Federal Reserve. While the central bank has signaled moderation, any shift in the inflation narrative could change its tone.
Markets expected and had priced in the CPI drop, however, so it's possible stocks won't move drastically in response to the data. Futures rose slightly after the release.
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
