US prices dropped in December for first time since May 2020 as inflation rate fell to 6.5%

According to latest consumer price index, cost of living dropped 0.1% in December while inflation rate fell from 7.1% in November

Prices dropped in the US in December for the first time since May 2020, in an encouraging sign that the inflation crisis may be easing.

According to the latest consumer price index (CPI) - which measures a broad range of goods and services - the cost of living dropped 0.1% in December compared with a rise of 0.1% in November. The annual rate of inflation fell to 6.5% from 7.1% in the previous month, the sixth straight month of yearly declines, according to the Bureau of Labor Statistics.