Market and stock exchange Core rate of US inflation drops surprisingly
There was a surprise with the inflation figures in the USA. The core inflation rate excluding energy and food was slightly lower than expected in December 2024.
15.01.2025, 17:46
SDA
Consumer prices climbed by 3.2 percent in December compared to the same month last year, after rising by 3.3 percent in November, according to the US Department of Labor in Washington on Wednesday. Analysts had expected the rate to remain unchanged.
Overall, consumer prices rose by 2.9 percent in December compared to the same month last year. This is an acceleration in inflation. In November, the inflation rate was 2.7 percent. However, analysts had on average expected the rise in inflation.
The Fed pays particular attention to the core rate. According to experts, it reflects the general price trend better than the overall inflation rate.
The Fed is aiming for an inflation rate of two percent in the medium term. The Fed last lowered the key interest rate by 0.25 percentage points in December. The next interest rate decision is scheduled for the end of January.
The inflation data pleased investors. Stock markets began to rise after the publication. The Swiss franc gained significantly against the US dollar following the data.
