Core CPI in December falls short of expectations, alleviating pressure on the Federal Reserve

The Bureau of Labor Statistics reported that the core CPI increased by 0.2% in December, falling short of forecasts. Year-on-year, the CPI growth held steady at 2.7%, indicating a potential moderation in inflation.

The softer than expected inflation data could lead the Fed to pause rate cuts. Housing costs remained the primary driver of inflation increases, while both energy and food prices saw mixed movements.