Energy and food prices drove inflation in December
Published On Jan 15, 2025, 4:40 PM
In December, inflation rose primarily due to increased energy and food prices, with the Consumer Price Index (CPI) showing a 2.9% increase compared to the previous year. The energy index surged by 2.6%, largely driven by a 4.4% increase in gas prices. Food prices rose 0.3%, continuing a trend of modest increases. Overall, the higher costs of essentials like fuel and food are putting pressure on consumers' budgets, making inflation a continued concern for many households.
Stock Forecasts
XLP
Positive
Given the ongoing inflation driven by higher energy and food prices, sectors like energy (particularly utilities) and consumer staples may see increased demand as consumers adjust their spending patterns. Conversely, sectors heavily reliant on discretionary spending may face challenges.
XOM
Positive
Investors in energy stocks should be cautious but can still benefit from rising prices. Companies like ExxonMobil may see gains from higher energy prices, but ongoing inflation could counterbalance growth.
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