The United States Consumer Price Index (CPI) rose two tenths in December, to 2.9% year-on-year, compared to 2.7% in November, and closed 2024 far from the 2% target and with a rebound that complicates the pace of decline of interest rates initiated in September by the Federal Reserve (Fed).
The underlying CPI data, which excludes volatile food and energy prices, fell one tenth in December to 3.2% year-on-year, the Bureau of Labor Statistics (BLS) reported this Wednesday.
In monthly terms, inflation rose 0.4%, above what analysts expected and data from recent months, after rising 0.3% in November. In underlying terms, increases moderated from 0.3% in November to 0.2% in December.
The rise in the general inflation data was 40% responsible for the increase in energy prices by 2.6%, with a sharp rise in the cost of gasoline, by 4.4%.
Food prices rose 0.3%, while new vehicles became more expensive by 0.5% and used vehicles by 1.2%. Housing rose 0.3%.
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The known inflation data is relatively positive for the Fed
The data known today are relatively positive for the Fed, which prefers to look at underlying inflation as an indicator of price developments to determine its monetary policy.
However, the figure is still above the issuing bank’s 2% target and its rate of moderation remains extremely slow.
The Federal Reserve’s Open Market Committee last met in December to decide on interest rates and lowered them by 25 basis points, but suggested a slower pace of future money moderation.
The Fed began rate cuts in September with a 50 basis point cut, which was followed by a 25 basis point cut in November.
Economic growth and unemployment, the other two indicators that decide the course of monetary policy, continue to show positive signs, which, however, exert upward pressure on prices, one of the main concerns of Americans.
With information from EFE.
