Inflation hits highest level since July, driven by rising energy, food costs

(MENAFN) Inflation in December surged to its highest point since July, with significant increases in energy and food prices contributing to the rise.

The US Labor Department's consumer price index (CPI), which measures the cost of everyday items such as gasoline, groceries, and rent, showed a 2.9 percent increase from the previous year after a 0.4 percent rise from November. This increase exceeded the expectations of LSEG economists.

A large portion of the price hike was attributed to climbing energy and food costs, which are putting pressure on household finances.

Energy prices accounted for more than 40 percent of the monthly CPI rise. The Bureau of Labor Statistics reported that the energy index rose by 2.6 percent in December after months of minimal changes and a 0.5 percent decrease in energy prices compared to the previous year.

After remaining steady in July, energy prices fell by 0.8 percent and 1.9 percent in August and September, respectively, before stabilizing in October. Prices saw a slight increase of 0.2 percent in November, followed by the significant 2.6 percent jump in December.

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