Inflation rose again in December as stubbornly high prices continued to strain consumers’ finances ahead of the Federal Reserve’s next decision on interest rates.
The Labor Department on Wednesday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – increased 0.4% in December while ticking up to 2.9% on an annual basis.
The month-to-month reading came in slightly hotter than expected by economists polled by LSEG, while the annual figure was in line with expectations. The headline figure was up compared with November’s reading of 2.7%, while monthly price growth continued at the same pace as a month ago.
So-called core prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, were up 0.2% on a monthly basis in December – down from 0.3% the prior month – and 3.2% from a year ago.
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