WASHINGTON, Jan. 16 (UPI) -- The Labor Department on Wednesday reported that the all-urban Consumer Price Index, the most widely followed gauge of inflation at the retail level, posted its second decline over the past three months in December.
The government agency said the CPI declined 0.2 percent during the final month of 2001 after posting no change November and falling 0.3 percent in October.
Excluding the often-volatile food and energy sectors, the so-called core CPI rose 0.1 percent after rising 0.4 percent in November, which was its largest rise since January 1996.
Economists on Wall Street were expecting the overall CPI to remain unchanged while the core rate was expected to rise 0.1 percent.
The government agency said for all of 2001, the CPI rose at a 1.6 percent annual pace -- its smallest increase since 1998 and following a 3.4 percent rise for all of 2000.
The core rate increased at a 2.7 percent clip compared with a 2.6 percent rate a year earlier.
The report showed energy prices, which account for about one-twelfth of the index, fell 3.2 percent in December after falling 4.4 percent in November.
Gasoline prices fell 6.0 percent after dropping 10.1 percent the previous month. Fuel oil prices dropped 7.1 percent last month, while natural gas costs declined 2.1 percent. For all of 2001 energy prices plunged 13.0 percent -- their largest decline since a 19.7 percent fall in 1986.
New car prices rose 0.2 percent in December after rising 0.6 percent in November. Transportation costs declined 0.8 percent last month and airfares fell 0.4 percent.
Clothing costs declined 0.6 percent in December after declining 0.9 percent in November.
The report showed food prices, which account for about a fifth of the index, eased 0.1 percent in December, the same as a month earlier.
Tobacco prices declined 3.4 percent in December after rising 3.9 percent a month earlier.
The government said housing costs, which include some energy costs and account for one-third of the index, rose 0.2 percent in December after rising 0.4 percent in November.
A category designed to track rental prices rose 0.4 percent for a third straight month.
Medical care costs rose 0.1 percent in December after posting a 0.5 percent rise in November.
In a separate report, the Labor Department said average weekly earnings adjusted for inflation rose 1.1 percent in December after rising 0.9 percent in November.
