US consumer prices record the first decline in 9 months

WASHINGTON (Reuters) - Consumer prices in the United States fell for the first time in nine months in December as gasoline fell, but core inflationary pressures remained strong as rents and health care surged.

The US Labor Department said Friday its consumer price index fell 0.1 percent last month, the first drop and the weakest since March. The CPI did not change in November. In the 12 months to December, the consumer price index rose 1.9 percent after rising 2.2 percent in November.

The December inflation reading is in line with economists' expectations. The Federal Reserve, which targets inflation at 2 percent, follows a different measure, the personal consumption price index, to make monetary policy decisions.

The core consumer price index rose 1.9 percent year-on-year in November after rising 1.8 percent in October. The index stood at 2 percent in March for the first time since April 2012.

A sharp drop in oil prices, amid a surplus in supplies and slowing global economic growth, keeps inflation under control. The decline in oil prices also affects basic inflation through low airfares.

(Edited by Moataz Mohammed for the Arabic version - edit Wajdi al-Alfi)

The NZDUSD is trading positively above the 0.6795 level, supporting expectations of a bullish move, awaiting the visit of 0.6910, which is our next major stop, noting that stability above 0.6795 is required to continue the expected bullish direction.

The trading range for today is expected among the support at 0.6740 and the resistance at 0.6900

The general trend for today is bullish


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