The latest inflation numbers are in and, once again, there’s something for everyone in the December report on consumer prices.
As usual, the immediate focus will be the top-line CPI number, which posted a sharp rise last month relative to November. Consumer prices advanced by 0.5% in December after standing pat in November, the Labor Department advised today. The main source for the rebound in prices was energy.
Ah, but energy prices are retreating this month, suggesting that the December CPI is already out of date and that January’s CPI update will provide a more comforting profile in the eternal battle against inflation. Crude oil futures continue to tumble in ’07 and now change hands at the lowest levels since mid-2005.