The prices consumers pay for a variety of goods and services rose again in December, but closed out 2024 with slightly better inflation news.
The consumer price index rose 0.4% for the month, bringing the 12-month inflation rate to 2.9%, the Bureau of Labor Statistics reported Wednesday. Economists surveyed by Dow Jones expected figures of 0.3% and 2.9% respectively.
However, excluding food and energy, the annual core CPI rate was 3.2%, down from the previous month and slightly better than the 3.3% forecast. The core measure rose 0.2% on a monthly basis, also 0.1 percentage points lower than expected.
Much of the CPI rise was driven by a 2.6% rise in energy prices for the month, pushed higher by a 4.4% rise in gasoline. That represents about 40% of the index’s rise, according to the BLS. Food prices also increased, up 0.3% over the month.
On an annual basis, food increased by 2.5% in 2024 while energy decreased by 0.5%.
Housing prices, which account for about a third of the CPI weighting, rose 0.3% but were up 4.6% from a year ago, the smallest year-over-year increase since January 2022.
Stock market futures jumped after the release while Treasury yields fell.
This is breaking news. Please check back for updates.
