A customer at a Best Farms in New York, November 2024. Prices have continued to increase this winter. Image: Newsday RM
Inflation continued to accelerate in December in the United States, reaching 2.9% year-on-year, according to the CPI index published on Wednesday, marking a third consecutive month of increase. This figure takes the country a little further away from the 2% objective set by the Fed, the American Federal Reserve.
Between December 2023 and December 2024, consumer prices increased by 2.9%, compared to 2.7% in November, according to the Labor Department. The CPI index, on which pensions are indexed, exceeds the monthly forecasts of analysts, who expected an increase of 0.3% between November and December.
Ultimately, the increase was 0.4%, driven by thehe rising prices for housing, airline tickets, used vehicles and car insurance.
Expected break
On the other hand, core inflation, excluding volatile food and energy prices, slowed to 3.2% year-on-year.
“This decline in underlying inflation is a relief, even if it remains well above the Fed’s 2% target”
Jochen Stanzl, analyst at CMC Markets
According to Jochen Stanzl, this publication confirms the idea that the Fed will limit rate cuts in 2025, “especially because the state of the job market does not raise concerns.”
The Fed had lowered rates three times in 2024, for a total of one percentage point. However, with inflation showing signs of recovery, markets are anticipating a pause in this cycle, in order to avoid overheating the economy. (mbr/ats)
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