Consumer price index barely budged in ’08

The consumer price index, a key indicator of inflation trends, dropped for the third consecutive month in December and barely rose for 2008, marking its slowest pace in 54 years, according to Department of Labor data released today. The CPI declined 0.7% in December from the previous month and rose 0.1% for 2008, according to the data. Economists polled by Chicago-based Briefing.com Inc. were forecasting a December CPI decline of 1%. The CPI’s slowest yearly growth since 1954 was attributed to declining energy prices, particularly gasoline. In December, energy prices fell 8.3%, driven mainly by a 17.2% fall in gasoline prices. The core CPI, which does not include food and energy prices, remained flat in December and rose 1.8% for 2008, its smallest gain since 2003.