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Overall consumer prices increased 0.1 percent in December after a 0.4 percent increase in November. NAFCU Vice President of Research and Chief Economist Curt Long attributed the smaller growth to falling energy prices.

"Energy prices, which rose sharply in November, retreated somewhat during the month as gasoline prices eased," Long said in a NAFCU Macro Data Flash report. "Meanwhile, food prices increased for the first time since September as meat prices rebounded. Core inflation beat expectations in December, increasing at the fastest pace since January."

Long also said higher costs for shelters, vehicles and medical care commodities boosted December's growth.

For the 12-month period, the overall consumer price index (CPI) rose 2.1 percent; it grew 2.2 percent in November.

Data published Friday by the Bureau of Labor Statistics found that core prices (excluding food and energy costs) increased 0.3 percent in December compared with the previous month. Year-over-year core CPI growth edged up to 1.8 percent.

From a year ago, energy prices were up 6.9 percent and food prices were up 1.6 percent.

"Overall, inflation softened somewhat during 2017, but with a tightening labor market and tax stimulus, many are anticipating stronger price growth in 2018," Long said. "If inflation does firm, the Fed will either meet or exceed its forecast for three rate hikes during the year."