U.S. Consumer prices in December fell capping a year of the smallest inflation change in the last 50 years amid a deepening economic recession around the country.

Consumer prices dropped 0.7 percent in December, after a decline of 1.7 percent in November, the U.S. Labor Department reported Friday.

Excluding food and energy costs were unchanged in December.

Consumer prices for the full year 2008 increased slightly 0.1 percent compared to 4.1 percent in 2007. This is the smallest annual increase since 1954 when actually the prices declined 0.7 percent.