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The U.S. Bureau of Labor Statistics has released the latest inflation data for December 2024, providing insights into consumer price trends. Here are the key details:
Core CPI m/m (Excludes Food and Energy)
- Current: 0.2%
- Expected: 0.3%
- Previous: 0.3%
The Core CPI, which strips out volatile food and energy prices, came in lower than expected at 0.2% for December. This marks a slowdown compared to the previous month’s reading of 0.3%, indicating a potential cooling in underlying inflation pressures.
CPI m/m (Monthly Overall Inflation)
- Current: 0.4%
- Expected: 0.4%
- Previous: 0.3%
The headline Consumer Price Index (CPI) matched expectations with a 0.4% increase for the month, showing a slight acceleration compared to the 0.3% growth in November. This figure reflects overall price changes across the economy, including food and energy.
CPI y/y (Annual Inflation)
- Current: 2.9%
- Expected: 2.9%
- Previous: 2.7%
On an annual basis, inflation rose to 2.9%, in line with market expectations, and higher than November’s 2.7%. The year-over-year increase highlights the continued impact of rising prices over the past 12 months.
Market Implications
- The weaker-than-expected Core CPI suggests underlying inflationary pressures may be easing, potentially impacting future Federal Reserve policy decisions.
- The headline CPI meeting expectations reflects steady price increases, keeping the Fed’s inflation target in focus.
- The uptick in annual inflation to 2.9% may fuel discussions about the trajectory of rate hikes or potential pauses.
Investors and policymakers will closely monitor upcoming data for more clues about the strength of the U.S. economy and the Fed’s next moves.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.