US inflation edges up, fueled by energy and housing prices, but many other costs rise only mildly

Higher energy and housing prices boosted overall U.S. inflation in December, a sign that the Federal Reserve’s drive to slow inflation to its 2% target will likely remain a bumpy one. Overall prices rose 0.3% from November and 3.4% from 12 months earlier. Those gains exceeded the previous 0.1% monthly rise and the 3.1% annual inflation in November. Housing costs accounted for more than half the increase in prices from November to December. Energy prices, led by electricity and gasoline, along with food prices also contributed to the increase. Excluding volatile food and energy costs, though, so-called core prices rose just 0.3% month over month, unchanged from November’s increase.