Falling in line with what many experts had projected, US inflation has risen to 2.9% in December of 2024. Indeed, the Bureau of Labor Statistics Consumer Price Index (CPI) for the month shows that the figure had increased over the 2.7% it recorded in November.
This data was always poised to be critical for the US Federal Reserve as they began to chart their next steps. Moreover, the increased figure has given more evidence to the likelihood that the Central Bank will slow its interest rate cuts over the course of this year.
BREAKING: 🇺🇸 US inflation rises to 2.9%.
— Watcher.Guru (@WatcherGuru) January 15, 2025
Also Read: US Inflation Rises to 2.7% in November 2024
US Inflation Rises in December as Critical Federal Reserve Decision Looms
Over the last several years, the United States has been engulfed in a horrid fight against inflation. The figure had reached a 40-year high, with interest rate cuts seeking to address the issue. Yet, in the final data report of 2024, things had not yet retreated to target levels.
In the final month of the year, US inflation had risen to 2.4% in December, according to the Bureau of Labor Statistics. Moreover, the data fell in line with what was expected from analysts. A reported Reuters poll showed economists predicting an increase from the November 2.7% figure.
Also Read: Federal Reserve Cuts Interest Rates Another 25 Bps Before 2025
The annual inflation data will be the final of the outgoing Biden administration. US President-elect Donald Trump is set to be inaugurated on Monday. Now, all eyes will be on the Federal Reserve and Chair Jerome Powell. Specifically, how they choose to move forward with Trump’s return imminent.
The Fed has recently signaled that they are planning a “careful approach” to cutting interest rates. Subsequently, the rising figure only reinforces that notion. They will seek to bring inflation down to their previously stated 2% target. Currently, investors and analysts agree that there is likely to be another 50 basis points cut by the end of this year.