The US inflation rate in December unexpectedly climbed to 3.4%, surpassing the forecasted 3.2%. This development is crucial for investors and policymakers, signifying a complex path ahead for the Federal Reserve’s monetary policy.
On Top of Our Mind This Week: US Inflation Rise in December – A Deeper Analysis
Source: Bloomberg
Data Details:
December’s inflation rate came in at 3.4%, exceeding economists’ expectations of 3.2%, a significant jump from November’s 3.1%. This rise was driven by a confluence of factors, with housing costs and energy prices leading the charge. Housing costs contributed to over half of the price increase. Additionally, energy costs, primarily driven by electricity and gasoline, along with rising food prices, played a significant role in this increase. However, the core CPI, which excludes volatile food and energy costs, continued its downward trend to 3.9% in December, from 4% in November. This was the lowest reading...