U.S. inflation rate cools to 6.5% in December

The inflation rate in the US fell to 6.5 percent in December, mostly due to cheaper gasoline.

The U.S. Bureau of Labor Statistics said that on a monthly basis, the cost of living actually fell by 0.1 percent from November to December. The biggest reason for the decline is the drop in gasoline prices.

Pump prices fell 9.4 percent during the month, averaging $3.27 per gallon across the country. That equates to about $1.15 Canadian per liter.

In June, the average price of a gallon topped $5.

Cheaper gasoline was more than enough to offset increases in other major parts of the cost of living, and was enough to drag the overall annual rate down to 6.5 percent from 7.1 percent previously.

Shelter costs rose 0.8 percent over the month, while food rose 0.3 percent.

The weakness is in line with what economists expect.