Reply To: Traders Market Weekly: Geopolitics and Stormy Weather


Total CPI was up 0.3% month-over-month in December (consensus 0.2%) following an unrevised 0.1% increase in November. Core CPI, which excludes food and energy, was also up 0.3% month-over-month (consensus 0.2%). The shelter index jumped 0.5% and accounted for over half of the monthly increase in total CPI.

With these December changes, total CPI was up 3.4% year-over-year, versus 3.1% in November, and core CPI was up 3.9% year-over-year, versus 4.0% in November.

The key takeaway from the report is that inflation, while improved, has lost some of its downward momentum. Therefore, the Fed isn’t likely to be in a rush to cut interest rates — at least not yet based on this latest CPI reading.

Consumer Inflation in December Rises Most in Three Months