US inflation rose 2.9% in December, slightly exceeding forecasts and presenting a challenge for the Federal Reserve in its efforts to bring inflation down to the 2% target. While core CPI, excluding volatile energy and food prices, showed a slight decrease, economists remain concerned about the potential impact of the incoming Trump administration's economic policies on inflation.
Inflation rose 2.9% on an annual basis in December, with the latest Consumer Price Index illustrating the Federal Reserve 's challenge in battling stickier-than-expected price increases. Last month's CPI was forecast to come in at 2.8%, according to economists surveyed by financial data firm FactSet. The Consumer Price Index, a basket of goods and services typically bought by consumers, tracks the change in those prices over time.
'After recent red-hot data, today's softer than expected core CPI reading should help cool fears of a reacceleration in inflation,' said Tina Adatia, head of fixed income client portfolio management at Goldman Sachs Asset Management, in an email. 'While today's release is likely insufficient to put a January rate cut back on the table, it strengthens the case that the Fed's cutting cycle has not yet run its course.
INFLATION FEDERAL RESERVE CPI ECONOMIC POLICIES TARIFFS
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