Key US inflation gauge rose just 1.6% in 2019: official

Washington (AFP) – Price increases remained tepid last year, reflected by a closely-watched measure of US inflation which rose just 1.6 percent in December compared to 2018, according to government data released Friday.

Excluding volatile food and energy goods, the inflation gauge also rose 1.6 percent year-over-year, well below the Federal Reserve’s 2.0 percent target, the Commerce Department reported.

The modest inflation comes as US consumers spending rose but at a slower pace in December compared to the prior month and to the same month of the prior year.