Gasoline, food prices fuel jump in inflation

Inflation accelerated in the Bay Area in December, driving up prices 3.8 percent over the previous year, the federal government announced Wednesday.

Higher gasoline and food costs fueled the biggest jump in inflation in the Bay Area since August 2006, according to figures issued by the Bureau of Labor Statistics.

Pressure on prices built steadily in the region during the second half of the year. Gasoline prices in the Bay Area have increased 8.6 percent since October and 31.6 percent since last year, said Richard J. Holden, commissioner of the bureau’s San Francisco office. As a result, transportation costs have climbed 7.7 percent over the last year.

Food costs have increased 5.4 percent over the past year, driven by a 6.8 percent jump in prices at grocery stores. Restaurants have kept a tighter grip on costs, boosting prices 4.0 percent over the last year.

Housing costs, which comprise approximately 45 percent of the Consumer Price Index, have increased 2.3 percent over the last year.

Health care costs rose 7.4 percent over the past year, while recreation prices increased 3.4 percent.

Clothing prices, however, are falling in the Bay Area. Apparel prices have dropped 5.7 percent in the past year.

The Consumer Price Index measures the average change in the prices paid for a market basket of goods and services.