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U.S. December CPI Shows 2.7% Year-on-Year Increase, Technical Factors Warned

U.S. December CPI Shows 2.7% Year-on-Year Increase, Technical Factors Warned

U.S. December CPI held at 2.7% year-on-year, with core inflation at 2.6%, as market participants assess whether easing price trends could give the Federal Reserve room to consider rate cuts in early 2025.

Fact Check
The assessment is based on strong, consistent evidence from the most relevant sources provided. The Financial Times, a source with very high authority (0.90) and perfect relevance (1.00), directly states that the U.S. inflation rate for December was 2.7%, perfectly matching the claim. This is corroborated by Trading Economics, another relevant source, which states the figure was 'likely' 2.7%. While several other sources from highly authoritative bodies like the U.S. Bureau of Labor Statistics (BLS) and the Federal Reserve (FRED) are listed, the provided summaries for these sources do not contain the specific CPI figure for December; they focus on employment data or are general database links. Crucially, none of these sources contradict the claim. The remaining sources are irrelevant as they pertain to the economies of other countries (Australia, Rwanda) or different economic indicators (gold prices). With direct confirmation from a top-tier financial news source and no conflicting evidence, the statement is highly likely to be true.
Summary

The U.S. December Consumer Price Index rose 2.7% year-on-year, in line with expectations, while core CPI eased to 2.6%, slightly below forecasts. B. Riley Wealth strategist Art Hogan noted that continued moderation in inflation could provide the Federal Reserve with flexibility to consider interest rate cuts in the first quarter, even as policy is widely expected to remain unchanged in January 2025.

Terms & Concepts
  • CPI (Consumer Price Index): A key economic indicator that measures the average change in prices paid by consumers for goods and services over time.
  • Core CPI: An inflation measure that excludes volatile items such as food and energy to provide a clearer view of underlying price trends.