US consumer prices rise by 2.9 percent few days before Trump takes office

(MENAFN) In December, US consumer prices climbed 2.9 percent in comparison to a year ago, marking an increase from the month before and continuing a renewed struggle of inflation few days ahead of President-elect Donald Trump steps into office. The reading aligned with economists' estimates.

The new statistics come after a jobs report last week signaled more robust hiring in December, which caused the stock market to plunge and bond yields increase over expectations that the Federal Reserve may postpone long-predicted interest rate cuts.

Additionally, the Fed may find another cause to postpone those interest rate cuts in Wednesday's report, as inflexible price hikes may stir up worry that inflation would go even higher if interest rates were to be reduced.

The inflation reading in December signals a rise from an annual inflation rate of 2.7 percent in the month before.

Core inflation, which excludes volatile food and energy prices, soared by 3.2 percent for the year ending in December, showing a slight decrease from the previous month, according to the data.

Food prices climbed by 2.5 percent in December in comparison to the same month in 2023, indicating a higher increase than the prior month but still growing at a slower pace than the overall inflation rate.

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