ECONOMY

Washington inflation gauge accelerates in December readings

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Washington inflation gauge accelerates in December readings

Media Bias Meter

Sources: 6

Center 100%

Sources: 6

Washington. The Commerce Department on Friday reported a key inflation gauge accelerated in December, with monthly prices rising 0.4% after a 0.2% increase in November and annual inflation at 2.9%, up from 2.8%. Core prices, excluding food and energy, also rose 0.4% monthly and 3.0% annually. The release, delayed by last fall's six-week government shutdown, showed the largest monthly increases since February and the largest year-over-year core gain since March. Policymakers face evidence that inflation remains above the Federal Reserve's 2% target even as unemployment stays low. Markets responded with muted volatility. Based on 6 articles reviewed and supporting research.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

2022: U.S. inflation peaked near 7%, prompting policy responses.
Last fall: A six-week government shutdown delayed the Commerce Department report.
November: Monthly inflation was 0.2%; annual inflation stood at 2.8%.
December (report released Friday): Monthly prices rose 0.4%; annual inflation rose to 2.9%; core annual inflation reached 3.0%.
Early January: Markets and policymakers noted inflation remains above the Fed’s 2% target despite low unemployment.

Why This Matters to You

Inflation affects your wallet. When it's high, your dollars buy less. The latest rise means everything from groceries to gas could cost more. Keep an eye on your budget and consider ways to offset these increases.

The Bottom Line

Inflation remains above the Fed's target, despite low unemployment. This could lead to policy changes aimed at slowing inflation down. If you're concerned, it might be worth discussing your financial strategy with a professional. Worth forwarding if you know someone keeping a close eye on their budget.