United States December Consumer Inflation Jumps More Than Expected; Read Details Inside

Inflation In US:  Consumer inflation in the United States rose more than expected in December. However, underlying pressures still appeared to be easing, as per government data released on Thursday.

The Labor Department's Consumer Price Index (CPI), which is a key measure of inflation in the United States, was up by 3.4 per cent against last year's value in the same month. it is up from November's figure as well.

However, the "core" metric, which strips out volatile food and energy prices, cooled to 3.9 per cent in December 2023.

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Meanwhile, analysts expect Federal Reserve officials would not set their rate based on a month's worth of data, accelerating inflation could increase pressure on the central bank.

Policymakers have raised interest rates sharply into early 2022, keeping them at high levels, as they seek to dampen demand and curb persistent inflation.

It aims to facilitate demand by making savings more attractive than spending.

Despite the CPI increase in December, inflation has slowed significantly from a peak of 9.1 per cent in June 2022, while consumer spending and the job market remained resilient.

That has raised expectations of a so-called "soft landing" for the world's largest economy, where inflation cools without a damaging slowdown.

From November to December, the CPI increased by 0.3 per cent over the previous month.

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