US Inflation Jumps as Consumer Prices Climb in December 2010

Americans paid extra for nearly everything last month as the cost of living picked up more than expected, newly released US inflation data from the government shows.

Consumer prices advanced 0.5 percent in December 2010, capping six straight monthly gains. Many forecasters were pegging an inflation rate that hovered closer around 0.4 percent. Consumer prices were up 0.1 percent in November, but back then energy prices were in check as they had risen by the smallest amount in five months.

Most items the government tracks actually ticked only modesty higher in December 2010, but not energy. Prices at the pump soared. Gasoline jumped 8.5 percent in December 2010 versus a 0.7 percent increase during the previous month. Continue reading