The Labor
Department reported on Thursday the U.S. consumer price index (CPI) rose 0.3
per cent m-o-m in December, following an unrevised 0.1 per cent m-o-m
uptick in the
previous month. This represented the sharpest monthly advance in headline CPI since September 2023 (+0.4 per cent
m-o-m).
Over the last
12 months, the CPI jumped 3.4 per cent y-o-y, quickening from an unrevised gain
of 3.1 per cent y-o-y reported for the period ending in November. This was the strongest 12-month increase in three months.
Economists had expected
the U.S. CPI to increase 0.2 per cent m-o-m and 3.2 per cent y-o-y.
According to
the report, the index for shelter (+0.5 per cent m-o-m) continued to grow in December,
contributing over half of the monthly advance in all items index. In addition, the
energy index (+0.4 per cent m-o-m) and the food index (+0.2 per cent m-o-m) also
contributed to the increase.
Meanwhile, the
core CPI, excluding volatile food and fuel costs, went up 0.3 per cent m-o-m in
December, the same
pace as in the previous month. In the 12
months through December, the core CPI climbed 3.9 per cent, following
an unrevised 4.0 per cent surge for the 12 months ending November. This marked the weakest 12-month rise since May 2021 (+3.8 per cent).
Economists
had predicted the core CPI to rise by 0.3 per cent m-o-m and 3.8 per cent y-o-y
in December.