The United States Labor Department reported that consumer prices were unchanged in December from November. The rate was lower than analysts’ expectations of an increase of 0.1%. The 2011 consumer price index for all Urban Consumers came in at 3.0% lowering from the 3.4%, through the month of November year average. The energy index declined 1.3% in December counterweighing increases in other indexes. The lowered energy index was due to the decreases in the home energy and gasoline indices. Additionally, stores had cut prices to bolster holiday sales. This supported the Fed’s expectation that inflation will remain contained. Retailers had provided discounts to encourage consumer activity.
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