US CPI Rises to 2.9% in December

The Consumer Price Index (CPI) in the U.S. increased by 2.9% in December compared to the previous year, marking an uptick from November’s 2.7% rate, driven largely by rising energy costs, particularly gasoline, which saw a 4.4% increase. Core CPI, which excludes food and energy, rose by 3.2% year-over-year, slightly down from November's 3.3%, suggesting cooling inflation pressures. The monthly CPI rose by 0.4% in December, exceeding economists' expectations of a 0.3% rise. Economists are hopeful that the slower growth in core prices could revive prospects for lower interest rates, although the Federal Reserve may hold off on rate cuts at its next meeting due to the persistent inflation above the 2% target. The broader economic outlook is being closely monitored, as potential policy changes by the incoming administration could impact inflation dynamics.