Partly reflecting a continued increase in shelter prices, the Labor Department released a report on Thursday showing consumer prices in the U.S. rose by slightly more than expected in the month of December.
U.S. consumer prices rose more than expected in December, increasing by 0.3% month-on-month and 3.4% year-on-year, driven in part by rising rents. The cost of shelter accounted for over half of the increase in the consumer price index (CPI). Excluding volatile food and energy components, the core CPI rose 0.3% in December and 3.9% on a year-on-year basis.
The Switzerland market ended weak on Thursday, in line with most of the markets in Europe, after data showing a bigger than expected increase in U.S. consumer price inflation tempered expectations of an early rate cut.
Consumer prices in the U.S. inched up in line with economist estimates in the month of November, according to a highly anticipated report released by the Labor Department on Tuesday.
Us Consumer Prices: Financial markets and most economists believe that the U.S. central bank s monetary policy tightening campaign is over, a narrative that Fed Chair Jerome Powell and other policymakers have pushed back against. Powell said last week that "if it becomes appropriate to tighten policy further, we will not hesitate to do so." Since March 2022, the Fed has hiked its policy rate by 525 basis points to the current 5.25%-5.50% band.