The core inflation rate decreased to 3.2% in December, below the anticipated level.

In December, the prices of various goods and services increased once again, but there was some positive news on inflation at the end of 2024.

The Bureau of Labor Statistics reported on Wednesday that the consumer price index increased 0.4% on the month, resulting in a 12-month inflation rate of 2.9%. Economists surveyed by Dow Jones had predicted respective readings of 0.3% and 2.9%.

The core CPI annual rate was 3.2%, a slight improvement from the previous month but still below the forecast of 3.3%. The core measure increased by 0.2% on a monthly basis, which was 0.1 percentage point less than anticipated.

The increase in the Consumer Price Index (CPI) was mainly due to a 2.6% rise in energy prices, which was driven by a 4.4% increase in gasoline prices. This accounted for approximately 40% of the index's gain, according to the Bureau of Labor Statistics (BLS). Additionally, food prices also increased by 0.3% during the month.

In 2024, the annual percentage increase in food was 2.5%, while energy experienced a slight decrease of 0.5%.

The smallest one-year increase in shelter prices, which make up about one-third of the CPI weighting, was 0.3% in the most recent period, despite rising by 4.6% from the previous year.

Stock market futures surged following the release while Treasury yields tumbled.

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