Core CPI rises less than forecast as inflation pressures ease slightly in December
Published On Jan 15, 2025, 9:34 AM
The latest data from the Bureau of Labor Statistics shows that the core Consumer Price Index (CPI) rose by 0.2% in December, which is less than forecasted and lower than November's 0.3% increase. This marks the first deceleration in annual core CPI growth, now at 3.2%, after remaining steady at 3.3% for four months. While overall consumer prices have risen 2.9% year-over-year, inflation pressures seem to be easing, which could influence upcoming Federal Reserve interest rate decisions. Stocks rallied following the news, indicating positive market sentiment regarding the economic outlook.
Stock Forecasts
SPY
Positive
The easing inflation data could lead to a more favorable environment for equities, especially if it results in more dovish Federal Reserve interest rate policies. Investors may benefit from sectors sensitive to interest rates, and broad-based market ETFs may perform well as sentiment improves.
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