The fact that rents have maintained an upward trend has contributed to the acceleration of inflation, which could delay the planned reduction in interest rates by the US Central Bank (Fed), now expected in March.
Core inflation, which excludes food and energy prices, also exceeded analysts’ expectations by a tenth of a percentage point. It was 3.9% year-on-year and 0.3% month-on-month.
Energy prices fell 2% year-on-year in December. Food prices instead increased by 2.7%.
Inflation remains above the Fed’s 2% target. However, it has slowed from a more than four-decade high of 9.1%, where it rose in June 2022.
Last March the Fed began raising interest rates with the aim of keeping inflation under control. Its key rate has since risen by 5.25 percentage points, considered one of the Fed’s quickest responses to high inflation. The last time the Fed raised interest rates was last July. The key rate is now between 5.25 and 5.50 percent, the highest level since 2001.
In December, the Fed indicated that monetary policy tightening was over and that it would reduce borrowing costs this year.
Eurozone inflation accelerated to 2.9% in December
2024-01-11 13:40:07
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