U.S. cost of living sees biggest drop in 6 years

The cost of living in the U.S. declined by the largest amount in six years last December, Bloomberg News reports. The drop reflects falling energy costs, which are keeping inflation from rising toward the Federal Reserve's goal.

The plunge is attributed to the biggest drop in clothing costs since 1998, cheaper air fares, and cheaper new and used cars.

"This is a number that consumers will love but economists will worry about," Ameriprise Financial Inc. senior economist Russell Price told Bloomberg News. As falling prices "filter through the system, it should take nine months to a year, then we should start to see inflation in the U.S. and around the world start to pick back up."

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