Washington: consumer inflation Government data on Thursday showed the United States grew more than expected in December, although underlying pressures still appear to be easing.
of labor department consumer price Index (CPI), a key measure of inflation, was up 3.4 percent from a year earlier and higher than November’s figure.
However, a “core” metric that strips out volatile food and energy prices declined to 3.9 percent in the last month of 2023.
While analysts do not expect federal Reserve Officials will base their rate-setting on one month’s worth of data, which could increase pressure on the central bank if inflation picks up.
Policymakers raised interest rates sharply in early 2022 and kept them at high levels to stoke demand and keep inflation at a steady pace.
Its purpose is to reduce demand by making savings more attractive rather than spending.
Despite CPI rising in December, inflation has slowed significantly from a peak of 9.1 per cent in June 2022, while consumer spending And the jobs market remained flexible.
That has raised hopes of a so-called “soft landing” for the world’s largest economy, where inflation will cool down without a damaging recession.
From November to December, the CPI rose 0.3 percent, more than the previous month.