Release of CPI Report for December 2024
Fogged the way for FED
The December 2024 Consumer Price Index (CPI) report showed inflation remaining above the Federal Reserve's target, but with some signs of easing. This particular report, showing inflation above the Fed's target but with some signs of easing, is especially significant as it may complicate decisions on potential interest rate cuts in the coming year. It indeed fogged the way for the Federal Reserve's decision-making process.
Monthly CPI increased 0.4%, slightly higher than the anticipated 0.3%.
Core CPI, which excludes food and energy, increased 3.2% annually, lower than the expected 3.3%.Core CPI rose 0.2% month-over-month, in line with estimates.
Headline CPI rose 2.9% year-over-year, matching expectations.
Key factors influencing the December CPI:
Energy index increased 2.6%, contributing over 40% of the monthly CPI rise.
Food index rose 0.3%, with both food at home and food away from home increasing by 0.3%.
Shelter, airline fares, used cars and trucks, new vehicles, motor vehicle insuranc…