Prices were lower last month for dozens of products including airline tickets, chicken and shoes, providing some modest relief to Americans who faced historically high inflation in 2022.
Overall consumer prices fell a seasonally adjusted 0.1% in December from November—the first monthly decrease since May 2020, the Labor Department said. But the annual inflation rate remained high. The consumer-price index rose 6.5% from December 2021.
December’s monthly CPI decline masked wide disparities in changes. The price of eggs rose 11.1% last month, and were up 59.9% from a year earlier. The price of bacon, though, was down 2.9% last month and 3.7% below a year earlier.
Consumer-price index, select items
Services less energy services
Meats, poultry, fish and eggs
Goods less food and energy
Services less energy services
Meats, poultry, fish and eggs
Goods less food and energy
Services less energy services
Meats, poultry, fish and eggs
Goods less food and energy
Services less energy services
Meats, poultry, fish and eggs
Goods less food and energy
Services less energy services
Meats, poultry, fish and eggs
Goods less food and energy
Here are some notable price changes at the end of last year.
Grocery Bill
A bird disease has caused tens of millions of chickens to die and pushed up egg prices. That led an overall increase in grocery prices, which advanced 0.2% in December and 11.8% from a year earlier.
Bread, breakfast cereal and cookies also increased in price last month.
But Americans could spot falling prices in certain aisles.
Chicken prices fell 0.6% in December from the preceding month but were still 10.9% higher than a year earlier. Ground beef edged lower last month. And milk costs declined 1% last month but were up 12.5% year-over-year.
Fresh fruits and vegetables dropped 1.1% in December from November but were up 6.4% from a year earlier.
Moving Around
Falling energy costs, particularly lower gasoline prices, were a significant driver of the slowdown in overall inflation in December.
Gasoline prices declined 9.4% in December from November and were down 1.5% from a year earlier.
It was also cheaper in December to get around a city, drive across the state and fly across the country. Airline tickets were 3.1% cheaper last month than in November. Still airfares were up 28.5% from a year earlier.
Mass transit within cities also ticked down in cost last month and the cost to rent a car fell 1.6% in December and was down 4.9% from a year earlier.
Buying a vehicle also was less expensive. The price of used cars and trucks fell 2.5% on the month and 8.8% on the year. New vehicles cost slightly less in December compared with November but were still 5.9% more expensive than a year earlier.
The prices of some other goods also fell in December. Prices for both shoes and sports equipment fell 0.2% in December from the prior month.
Services Costs Rise
One area where consumers didn’t see much relief was services.
The cost for daycare and preschools rose 0.3% in December from November. It was up 5.4% from a year earlier, the highest increase since 2006.
Prices for haircuts, pedicures and other personal-care services rose 0.3% in December from November. Compared with a year earlier, those costs rose 6.3%. Laundry and dry cleaning cost 0.4% more in December and were up 7.1% from a year earlier.
Going out cost more, too. Meals at full-service restaurants rose 0.1% in December, while shots of whiskey and gin and tonics at bars and restaurants cost 1.4% more. The price for sports tickets increased 4.5% last month from November.
More expensive services reflect continued strong demand as more Americans return to working in offices and want to gather in person. At the same time, a limited supply of workers—the unemployment rate was 3.5% in December—is causing wages to rise, particularly for those in typically lower-paying fields.
Write to Austen Hufford at austen.hufford@wsj.com
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