The Fort Worth Press - US consumer inflation rises in December but underlying pressures ease

USD -
AED 3.673042
AFN 75.579458
ALL 93.684261
AMD 400.552092
ANG 1.798867
AOA 913.503981
ARS 1045.056589
AUD 1.583531
AWG 1.8025
AZN 1.70397
BAM 1.861691
BBD 2.015325
BDT 121.726715
BGN 1.861691
BHD 0.376279
BIF 2953.786112
BMD 1
BND 1.345676
BOB 6.897339
BRL 5.913191
BSD 0.998144
BTN 86.050164
BWP 13.758507
BYN 3.266479
BYR 19600
BZD 2.00495
CAD 1.43445
CDF 2845.000362
CHF 0.905523
CLF 0.035514
CLP 979.943839
CNY 7.244104
CNH 7.244295
COP 4222.645281
CRC 503.64095
CUC 1
CUP 26.5
CVE 104.959307
CZK 23.909404
DJF 177.744991
DKK 7.110904
DOP 61.472562
DZD 134.215411
EGP 50.244158
ERN 15
ETB 128.437961
EUR 0.95205
FJD 2.30475
FKP 0.823587
GBP 0.800948
GEL 2.870391
GGP 0.823587
GHS 15.172053
GIP 0.823587
GMD 72.503851
GNF 8630.717243
GTQ 7.715006
GYD 208.823949
HKD 7.78689
HNL 25.416211
HRK 7.379548
HTG 130.388844
HUF 388.790388
IDR 16170.45
ILS 3.59195
IMP 0.823587
INR 86.210504
IQD 1307.600781
IRR 42100.000352
ISK 139.430386
JEP 0.823587
JMD 157.022512
JOD 0.709504
JPY 155.998504
KES 129.113322
KGS 87.450384
KHR 4016.943506
KMF 468.303794
KPW 900.000111
KRW 1429.630383
KWD 0.30807
KYD 0.83185
KZT 516.967303
LAK 21751.463519
LBP 89383.751368
LKR 297.701204
LRD 197.629813
LSL 18.332493
LTL 2.95274
LVL 0.60489
LYD 4.910761
MAD 9.967731
MDL 18.565513
MGA 4664.223502
MKD 58.569321
MMK 3247.960992
MNT 3398.000107
MOP 8.008662
MRU 39.916234
MUR 46.350378
MVR 15.410378
MWK 1730.807672
MXN 20.270604
MYR 4.377504
MZN 63.910377
NAD 18.332493
NGN 1558.000344
NIO 36.73314
NOK 11.203725
NPR 137.680263
NZD 1.751053
OMR 0.384599
PAB 0.998144
PEN 3.70682
PGK 4.006473
PHP 58.250375
PKR 278.182666
PLN 4.008853
PYG 7897.767836
QAR 3.639046
RON 4.740604
RSD 111.484461
RUB 97.805911
RWF 1391.842368
SAR 3.747466
SBD 8.43942
SCR 14.339038
SDG 601.000339
SEK 10.93003
SGD 1.346104
SHP 0.823587
SLE 22.703667
SLL 20969.49992
SOS 570.463091
SRD 35.105038
STD 20697.981008
SVC 8.733521
SYP 13001.999985
SZL 18.337062
THB 33.589038
TJS 10.87973
TMT 3.51
TND 3.176717
TOP 2.342104
TRY 35.661504
TTD 6.787873
TWD 32.748304
TZS 2542.287373
UAH 41.835324
UGX 3681.88092
UYU 43.396316
UZS 12944.648042
VES 56.580451
VND 25080
VUV 118.722008
WST 2.800827
XAF 624.393889
XAG 0.032693
XAU 0.000361
XCD 2.70255
XDR 0.769026
XOF 624.393889
XPF 113.521489
YER 249.050363
ZAR 18.396665
ZMK 9001.203587
ZMW 27.723573
ZWL 321.999592
  • BCC

    -1.3400

    127.11

    -1.05%

  • SCS

    -0.0700

    11.53

    -0.61%

  • NGG

    -0.4300

    60.28

    -0.71%

  • BTI

    0.8600

    37.91

    +2.27%

  • AZN

    0.4600

    69.06

    +0.67%

  • RIO

    0.5300

    62.09

    +0.85%

  • GSK

    0.2200

    34.27

    +0.64%

  • RBGPF

    62.2800

    62.28

    +100%

  • BP

    -0.0400

    31.45

    -0.13%

  • CMSC

    0.1150

    23.6

    +0.49%

  • CMSD

    0.0900

    23.96

    +0.38%

  • RELX

    -0.5400

    48.85

    -1.11%

  • BCE

    0.3100

    23.53

    +1.32%

  • JRI

    0.0400

    12.59

    +0.32%

  • RYCEF

    0.0000

    7.55

    0%

  • VOD

    -0.0300

    8.37

    -0.36%

US consumer inflation rises in December but underlying pressures ease
US consumer inflation rises in December but underlying pressures ease / Photo: © AFP

US consumer inflation rises in December but underlying pressures ease

US consumer inflation rose for a third straight month in December as energy prices jumped but a widely watched measure eased slightly, raising hopes that underlying inflation may be moderating.

Text size:

The consumer price index (CPI) accelerated to 2.9 percent last month from a year ago, up from 2.7 percent in November, the Labor Department said in a statement on Wednesday.

This was in line with the median forecast of economists surveyed by Dow Jones Newswires and The Wall Street Journal.

Stocks jumped on the news, with all three major indices on Wall Street closing sharply higher.

On a monthly basis, inflation rose by 0.4 percent, slightly faster than expected.

One of the biggest drivers of inflation in December was the energy index, which jumped by 2.6 percent, accounting for "over" 40 percent of the monthly increase, according to the Labor Department.

In some good news for the Federal Reserve, annual inflation excluding volatile food and energy costs came in at a lower-than-expected 3.2 percent, marking a slight decline from the month earlier.

- Focus on the core -

The so-called "core" measure of inflation increased by 0.2 percent, also slightly below expectations.

"The focus is really on the core reading, and the core reading did come in better than the consensus expectations," Nationwide chief economist Kathy Bostjancic told AFP.

The US central bank has cut rates by a full percentage point since September as it looks to bolster the labor market.

The recent uptick in inflation adds to expectations that it will remain firmly on pause at its next rate decision later this month.

However, higher prices could complicate President-elect Donald Trump's economic plans as he prepares to return to office on Monday.

Trump has floated several policies, from tariffs to deportation, that many economists say could have an inflationary impact.

The Republican and his supporters have disputed this characterization, claiming that many of his proposals aimed at deregulation and boosting energy production should help keep prices in check.

- Bond yields drop -

US bonds rallied as investors reacted to signs of slowing core inflation, pushing down yields, which move inversely to prices.

"The softer core reading is really what the markets are focusing on right now, and that's why you're seeing a big rally in the bond market," said Bostjancic from Nationwide.

Lower yields on US Treasurys -- especially the popular 10-year note -- would be good news for consumers, since they are referenced by businesses when they price mortgages and car loans.

Wednesday's data release is nevertheless expected to fuel expectations that the Fed will pause rate cuts later this month, as headline inflation appears to be moving away from its long-term goal of two percent.

The Fed uses a different inflation measure to set interest rates, known as the personal consumption expenditures (PCE) price index. That index has also been rising in recent months.

Futures traders see a roughly 97 percent chance that Fed policymakers will vote to hold interest rates between 4.25 and 4.50 percent at the next rate meeting on January 28 and 29, according to data from CME Group.

"The pace of inflation is still elevated," said Bostjancic.

"There's strength in the labor market, and the prospects of changes in tariffs and immigration policies that could push inflation higher will keep the Fed cautious and patient with regard to cutting rates further," she said.

"In that light, we see the Fed moving to the sidelines in the first half of the year to assess the evolving economic inflation and policy landscape," she added.

The financial markets see a roughly 80 percent chance that the Fed will make no more than two rate cuts this year, according to data from CME Group.

H.M.Hernandez--TFWP