Inflation Predicted to Rise to 35.3% in 2024

Inflation in the U.S. rose unexpectedly in December, with the consumer price index increasing by 0.4%, bringing the annual inflation rate to 2.9%, which is above expectations. This uptick intensifies pressure on the Federal Reserve to reconsider the pace of interest rate cuts in 2025, especially in light of potential inflationary policies from the incoming Trump administration. Meanwhile, recent reports indicate a mixed economic landscape, with strong job growth and a reduction in wholesale inflation, suggesting complexities ahead for policymakers. Central bank officials have expressed concerns about rising inflation risks, which may influence their future decisions. As the Fed navigates these challenges, the Bureau of Economic Analysis will release December's personal consumption expenditures figures at the end of January, providing further insights into inflation trends.