American inflation falls to its lowest in more than a year
US inflation was 6.5% over the 12 months to the end of December, down from 7.1% in November, the US Labor Department said.
That was the smallest increase in more than a year and marked the sixth month in a row that the pace dropped.
Some items, such as oranges and bananas, even saw outright price falls in December compared with November.
Overall, prices slipped 0.1% over the month, driven by the fall in petrol prices.
In remarks on Thursday, President Joe Biden celebrated the report.
"We're moving in the right direction," he said. "It all adds to a real break for consumers, more breathing room for families."
But some analysts cautioned that the price relief was not spreading from energy to other items as quickly as hoped.
Clothing prices, for example, rose 0.5% from November to December and were up 2.9% compared with a year earlier.
"Goods deflation isn't broadening out quite as quickly as we expected," wrote Paul Alsworth, chief North America economist for Capital Economics.
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