Prices consumers paid for a variety of goods and services rose again in December, but 2024 ended with some mildly improving inflation news.
The U.S. Bureau of Labor Statistics reported on Wednesday that the consumer price index rose 0.4% this month and the 12-month inflation rate was 2.9%. Economists surveyed by Dow Jones had been looking for readings of 0.3% and 2.9%, respectively.
However, excluding food and energy, the core CPI annual rate was 3.2%, down from the previous month and slightly better than the 3.3% forecast. The core indicator increased by 0.2% quarterly, which was also 0.1 percentage point lower than expected.
The main reason for the increase in CPI was a 2.6% increase in energy prices and a 4.4% increase in gasoline prices during the month. This factor is responsible for about 40% of the index’s gains, according to the Bureau of Labor Statistics. Food prices also rose, up 0.3% for the month.
On an annual basis, food prices will increase by 2.5% in 2024, while energy prices will decrease slightly by 0.5%.
Home prices, which account for about a third of the CPI weight, rose 0.3%, but were up 4.6% from a year earlier, their smallest one-year gain since January 2022.
Stock futures soared after the news was announced, while bond yields plummeted.
This is breaking news. Please check back for updates.
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