US inflation
Prices in the US rose less than forecast in December, a signal that may cause the US Federal Reserve (“Fed”) to rethink its dot plot for interest rates. This reading came after several months of faster underlying inflation and is a sign that higher interest rates could be effective in taming runaway inflation. The core consumer price index (CPI) reading, which excludes food and energy costs, increased by 0.2% after posting four consecutive months of 0.3% increases. The reason? Cheaper hotel stays, more affordable medical care services, and moderate rent increases all contributed to the slightly lower CPI number. Investors should note, however, that this is just one reading which indicates that inflation is cooling. Officials at the Fed need to see a sustained pattern of lower CPI readings to reassure themselves that inflation has been truly brought...Welcome to this week’s edition of top stock market highlights.