CPI: Egg prices surge as US inflation picks up

Published On Jan 15, 2025, 8:50 AM

In December, US inflation rose to 2.9%, driven mainly by a surge in energy and food prices, particularly eggs which saw a 36% increase due to supply shortages from bird flu. Despite some price rises, core inflation was lower than expected at 3.2%, alleviating fears of aggressive Federal Reserve rate hikes. This mixed data has led to a rise in US share prices and a drop in bond yields, signaling market relief. Economists suggest that while the Fed is less likely to cut interest rates if the economy is growing, further monitoring of inflation trends is necessary. Key indicators show a tight relationship between inflation rates and potential Fed actions, and current data suggests cautious optimism in the market.