Summary:
US consumer prices rose in December, driven by higher energy costs, indicating persistent inflation and fewer Fed rate cuts this year.
US CPI Jan
12/2/2025 (Wed)
Previous: 2.9% Forecast: 2.9%
US consumer prices increased by the most in nine months in December amid higher costs for energy goods, pointing to still-elevated inflation that aligns with the Fed's projections for fewer interest rate cuts this year.
The shelter component was up 5.3% annually, again disappointing policymakers. But the core reading rose the least since March 2021 - some hopeful signs in the fight against inflation.
A resilient economy, the threat of broad tariffs on imported goods and mass deportations of undocumented immigrants are deemed inflationary, adding to uncertainties.
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