Beneath The Skin Of CPI Inflation: CPI +2.9% YoY, +0.39% MoM (+4.8% Annualized); Core CPI Stuck For 7th Month At 3.1-3.3%

2025-01-16 04:30:00 ET

Summary

• The overall Consumer Price Index rose by 0.39% (+4.8% annualized) in December from November, the sharpest increase since February 2024.
• Food price inflation has been accelerating for months and has now started to push the year-over-year needle higher. Energy prices surged for the month, which whittled down the year-over-year drop to just a hair.
• Core CPI, which excludes food and energy components to track underlying inflation, rose by 3.24% year-over-year, a deceleration from the prior month (+3.32%) but a faster rise than in July and August.

Categories that helped power the cooling of CPI are U-Turning - used & new vehicles, food, energy - just as housing seems to be coming in line.

The overall Consumer Price Index rose by 0.39% (+4.8% annualized) in December from November, the sharpest increase since February 2024. It has been accelerating since the low point in June (blue)....

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