The Bureau of Labor Statistics (BLS) in the United States has released the Consumer Price Index (CPI) data for December, indicating a rise in inflation to 3.4% and higher than expectations.
This shift marks a deviation from the previous downward trend. The current inflation figure represents an uptick from the 3.1% rate recorded in the previous month. However, it is lower compared to the 4% rate in May and the 4.9% rate in April.
Also read: Pakistan Must Never Be Allowed To Join BRICS Under Any Situation: India
December inflation number breaks the downtrend
The current inflation rate is down from 3.7% in September. November’s data, at 3.1%, offered a slight reprieve. Despite this, the Federal Reserve (Fed) still has progress to make in reaching its target rate of 2%.Â
For over a year, the Fed has been addressing elevated inflation levels through a strategy of aggressive policy tightening. Interest rates have been raised significantly to curb demand and stabilize prices. Despite persistently high inflation, the Fed is anticipating consistent declines as evidence that their approach is effective.
Also Read: 30 New Countries Ready To Join BRICS in 2024, Confirms Russia
Since March 2022, the Fed has gradually increased interest rates through a series of successive adjustments, resulting in the benchmark federal funds rate reaching a targeted range of 5 to 5.25 percent.
Additionally, it’s worth noting that investors will closely monitor stock and crypto movements in response to the released CPI numbers. The rise in inflation comes at a time when the crypto market is surging after the approval of a spot Bitcoin ETF in the US.