US inflation jumps 3.4% YoY in December, outpacing market forecast

January 12, 2023 (MLN): The U.S. consumer price index (CPI) for the month of December 2023 rose by 3.4% YoY, as compared to 3.1% YoY in November, the latest data issued by the U.S. Bureau of Labor Statistics on Thursday showed.

Consumer prices rose at a faster-than-expected pace, wherein the market forecast was that of 3.2% YoY.

Moreover, on a sequential basis, US CPI rose by 0.3% MoM as compared to 0.1% MoM in the previous month. This was the highest monthly pace in three months.

On the other hand, Core CPI eased to a 2.5-year low of 3.9% YoY, down from 4% in the previous month.

While on a sequential basis, Core CPI rose 0.3% MoM, the same as the previous month.

To note, CPI in the last year, December 2022 stood at 6.45% YoY, showing that the Federal Reserve with its fast-paced rate hikes and balance sheet reductions has been successful in curbing inflation to some extent.

However, it still remains above the country's 2% inflation goal.

CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

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