December inflation report likely to show prices ticked higher last month
foxbusiness.comSlateStone Wealth chief market strategist Kenny Polcari reacts to Jamie Dimon saying high Fed rates may lead to a recession on 'The Big Money Show.'
A closely watched inflation report due Thursday is expected to show that progress on fighting price pressures within the economy slowed in December.
Economists expect the consumer price index, which measures a range of goods that includes gasoline, health care, groceries and rent, to show that monthly prices rose 3.2% in December – above the 3.1% increase recorded the previous month.
On a monthly basis, inflation is seen rising 0.2%, which is also higher than in November, thanks to an uptick in energy prices.
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Other parts of the report are also expected to point to a slower retreat in inflation. Core prices, which exclude the more volatile measurements of food and energy, are projected to climb 0.3%, or 3.8% annually. Those figures are little changed from November, suggesting that underlying price pressures remain strong.
The Federal Reserve's target rate is 2%.
«The December consumer price index will be closely watched to see if there is continued improvement on the inflation front or if it has stalled,» said Greg McBride, chief financial analyst at Bankrate. «The core CPI is at 4% and has been declining consistently, but that is still a long way from 2%.»
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A customer visits a supermarket in San Mateo, California, on Dec. 12, 2023. (Photo by Li Jianguo/Xinhua via Getty Images / Getty Images)
The central bank is closely watching the report for evidence that inflation is finally subsiding as policymakers try to cool the economy with a
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