U.S. Annual Inflation Matches Consensus in December, Core CPI Beats By Investing.com

U.S. CPI increases 0.1% M/M in December vs. forecast of 0.2%

Investing.com – Consumer price inflation (CPI), on an annualized basis, rose as expected in December, although the core data unexpectedly strengthened, reinforcing the Federal Reserve’s plans to move ahead with gradual rate hikes, official data showed on Friday.

In a report, the U.S. Commerce Department said that rose 0.1% in December from a month earlier, below forecasts for a 0.2% increase and a 0.4% gain in the previous month.

Year-over-year, increased 2.1% last month, matching expectations and easing from the 2.2% advance seen in November.

, increased by a seasonally adjusted 0.3% last month, above expectations for a 0.2% advance and compared to November’s 0.1% rise.

Furthermore, also increased to an annualized rate of 1.8% in December, beating expectations that it would repeat the prior month’s reading of a 1.7% rise.

Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories. The central bank usually tries to aim for 2% core inflation or less.

According to Investing.com’s , Fed fund futures expect the U.S. central bank to hold rates steady for its January 31 decision, but raise them again in March as part of its plans to gradually remove accommodative policy.

After the report, which was released simultaneous with for the same month, was trading at 1.2139 from around 1.2135 ahead of the release of the data, was at 1.3637, compared to 1.3635 previously, while was at 111.40 from 111.15 earlier.

The , which tracks the greenback against a basket of six major rivals, was at 91.12, compared to 91.09 ahead of the report.

Meanwhile, U.S. stock futures pointed to a mixed open. The rose 64 points, or 0.25%, the were unchanged, while the slipped 5 points, or 0.07%.

Elsewhere, in the commodities market, traded at $1,327.90 a troy ounce, compared to $1,332.30 ahead of the data, while traded at $63.27, compared to $63.19 prior to the release.

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