US annual CPI inflation drops to 6.5% in December as expected

The US Bureau of Labor Statistics reported on Thursday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 6.5% on a yearly basis in December from 7.1% in November. This reading came in line with the market expectation. On a monthly basis, the CPI declined by 0.1% following November’s increase of 0.1%. Further details of the publication revealed that the Core CPI, which excludes volatile food and energy prices, edged lower to 5.7% on a yearly basis from 6% as expected. Finally, Core CPI rose by 0.3% on a monthly basis.

EUR/USD advances for the fifth consecutive session to trade in levels past the 1.0800 barrier on the back of the increasing selling pressure in the dollar, particularly exacerbated following the release of US inflation figures during December.