<\/p>\n\n\n\n
US consumer prices rose in line with expectations in December, while an underlying measure was slower than anticipated. This closely-watched gauge of inflation could influence the Federal Reserve’s interest rate policy plans in the coming months.<\/p>\n\n\n\n
The headline consumer price index (CPI) increased by 0.4% in December, slightly higher than the 0.3% rise recorded in November, according to the Bureau of Labor Statistics. On an annual basis, the CPI climbed by 2.9%, surpassing the previous reading of 2.7%.<\/p>\n\n\n\n
Meanwhile, the core CPI, which excludes volatile items such as food and energy, edged up by 0.2% month-over-month and 3.2% year-over-year. These figures came in lower than economists’ forecasts, which had anticipated numbers matching November’s pace of 0.3% and 3.3%, respectively.<\/p>\n\n\n\n
The report comes amid persistent concerns about inflation, especially after last week\u2019s robust employment data. President-elect Donald Trump\u2019s pledge to impose strict tariffs on both allies and adversaries has also heightened fears of lingering price pressures.<\/p>\n\n\n\n
In response, US government bond yields reached multi-month highs recently, reducing the appeal of stocks as investors adjusted their expectations for further Federal Reserve rate reductions in 2025. The central bank had already cut borrowing costs by a full percentage point in 2024.<\/p>\n\n\n\n
However, following the latest data, traders are now pricing in a potential Fed rate reduction as early as July, moving up prior expectations for a cut in September, according to Bloomberg News.<\/p>\n\n\n\n
US stock futures reacted positively, while benchmark 10-year Treasury yields slipped. Yields typically move inversely to bond prices, suggesting renewed optimism among investors.<\/p>\n\n\n\n
Despite this, the analysts cautioned that uncertainty around Trump\u2019s trade policies and potential fiscal imbalances in the US remain key macroeconomic risks.<\/p>\n\n\n\n
As investors navigate these mixed signals, the debate continues on how inflation trends and Federal Reserve policy will shape the outlook for stocks and bonds.<\/p>\n","protected":false},"excerpt":{"rendered":"
US consumer prices rose in line with expectations in December, while an underlying measure was slower than anticipated. This closely-watched gauge of inflation could influence the Federal Reserve’s interest rate policy plans in the coming months. The headline consumer price index (CPI) increased by 0.4% in December, slightly higher than the 0.3% rise recorded in …<\/p>\n","protected":false},"author":9,"featured_media":31560,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[11006,7987,6987,6858],"class_list":["post-110585","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates","tag-bls","tag-cpi-data","tag-inflation","tag-us-economy"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/110585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=110585"}],"version-history":[{"count":4,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/110585\/revisions"}],"predecessor-version":[{"id":110594,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/110585\/revisions\/110594"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31560"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=110585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=110585"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=110585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}