Sixth decline in a row: US inflation rate fell noticeably before the turn of the year

Inflation in the United States fell significantly before the turn of the year.

The inflation rate for goods and services fell to 6.5 percent in December from 7.1 percent in November, the Labor Department said in Washington on Thursday.

Experts surveyed by the Reuters news agency had expected a drop to 6.5 percent.

Core inflation - excluding volatile energy and food prices - fell to 5.7 percent from 6 percent.

This too was expected.

It is the sixth straight decline and fuels hopes that the wave of inflation is abating.

Nevertheless, the inflation rate is still well above the Fed's target of 2 percent.

This increased the base rate in December by half a percentage point – to the new range of 4.25 to 4.5 percent.

The monetary authorities meanwhile see considerable progress in curbing inflation and want to steer a less aggressive course.