Inflation ticked up to 3.4% in December while Americans grow more confident about the economy

Inflation climbed from 3.1% to 3.4% in December, a sign the Federal Reserve will continue to have to wrestle consumer price growth down to its desired 2% level.

Forecasts had been for a reading of 3.2%.

On a monthly basis, inflation hit 0.3%, while core inflation, which strips away the more volatile costs of food and energy, was 3.9%, down from 4% in November but ahead of forecasts for a reading of 3.8%.

Still, some consumers are starting to feel better about the economy, even though, to many of them, it probably doesn't feel like a big improvement.

But after two years of breakneck inflation that sent the cost of everyday goods and services surging, 2023 experienced a meaningful slowdown in price growth.