The Consumer Price Index (CPI) rose 1.5% on a year-over-year basis in December, following a 1.2% gain in November.

Prices were up in seven of the eight major components in the 12 months to December, with the transportation and shelter indexes contributing the most to the year-over-year rise in the CPI. The food index declined on a year-over-year basis for the third consecutive month.

The transportation index rose on a year-over-year basis for the fifth consecutive month, up 3.0% in December, after a 1.4% gain in November. This increase was led by gasoline prices, which increased 5.5% in the 12 months to December, following a 1.7% decline in November. At the same time, the purchase of passenger vehicles index rose less year over year in December (+2.6%) than in November (+3.0%), and the air transportation index registered its largest year-over-year gain since August 2013.