Inflation rises 2.9% in December, in line with expectations

Jan 15, 2025

Article from Fox Business by Eric Revell

Article Synopsis

In December, U.S. inflation rose 0.4% monthly and 2.9% annually, marking the highest annual rate since July 2024, according to the Labor Department. Core inflation, which excludes volatile food and energy prices, increased 0.2% monthly and 3.2% annually, reflecting a slight cooling from previous months. Rising energy and food costs drove much of the inflation, with energy accounting for over 40% of the monthly increase and egg prices soaring 36.8% year-over-year due to a bird flu outbreak.
Housing, transportation, and airline fares also contributed to higher costs, further straining consumers, particularly lower-income households. Despite persistent inflation, the Federal Reserve is expected to hold interest rates steady at its upcoming meeting, with markets anticipating no changes. Stocks rose and bond yields declined following the report, as investors viewed the data as signaling some relief in inflationary pressures. However, concerns remain over elevated prices and potential renewed inflation risks.

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