The U.S. annual headline inflation rate came in at 1.4% in December 2020, up from 1.2% in the previous month, data from the Bureau of Labor Statistics showed.
The consensus estimate of economists polled by Econoday was for annual inflation to come in at 1.3%.
Food prices increased 3.9% year over year, while energy prices declined 7.0%. Fuel oil and gasoline prices dropped 20.0% and 15.2%, respectively.
Annual core inflation, which excludes food and energy, rose 1.6%, the same increase recorded in October and November.
On a monthly basis, consumer prices rose 0.4% in December after a 0.2% increase in November. Energy prices rose 4.0%, while the food index ticked up 0.4%.
The core inflation index also inched up 0.1% month over month in December after a 0.2% increase in November.