US Inflation Slowed to 6.5% in December
Summary from the AllSides News Team
The Consumer Price Index (CPI) report is showing that the U.S. inflation rate slowed to 6.5%, marking the sixth month of easing prices.
Key Quotes: “The Fed is likely preparing to pause [rate hikes] sometime before the middle of the year, and that’s about as good as you’re going to be able to get,” Joe Brusuelas, chief economist at RSM, said of the inflation report. “But just remember: Go into a grocery store today, and look at the price of eggs. And remind yourself: Don’t get overexcited about inflation.”
For Context: While the receding inflation rate offers some relief for shoppers, the Federal Reserve says they will be watching for signs that the hot labor market and higher wages might result in higher consumer costs. The Federal Reserve has been raising interest rates aggressively during the past year in order to curb inflation.
How the Media Covered It: The CPI report was covered by sources across the political spectrum. Sources on the left noted that a recession could occur if the Federal Reserve is too aggressive in slowing the economy. Sources on the right noted that wage growth, more than the CPI, will impact the Federal Reserve's decision on continuing to hike interest rates.
Featured Coverage of this Story
From the Left
Inflation slowed further in December, a sixth month of easing prices
Inflation eased again in December, giving relief to households and businesses nationwide and offering more assurance to economic policymakers that price increases are pulling back after they soared to 40-year highs last year.
The latest inflation data, released Thursday by the Bureau of Labor Statistics, showed prices rose 6.5 percent in December compared with the year before — and fell 0.1 percent compared with November. It was the slowest rate of price increases in more than a year. Inflation is still well above normal levels, and the economy remains vulnerable to...
From the Center
Inflation Slowed to 6.5% in December
U.S. inflation slowed to 6.5% in December, marking the sixth straight monthly deceleration since a mid-2022 peak.
The department’s consumer-price index, a closely watched measure of inflation, rose 7.1% in November from a year earlier, it said last month. That marked the fifth straight month of a decline in the annual inflation rate from a 9.1% peak in June. Despite the recent easing of price pressures, the November rate was much faster than the 2.1% average in the three years before the pandemic.
The CPI measures what consumers pay for goods and services. The...
From the Right
CPI Inflation Rate Slides, But Core Prices Are Sticky; S&P 500 Futures Rise
The CPI inflation rate fell faster than expected in December. However, core inflation, which strips out food and energy, slowed in line with forecasts. S&P 500 futures rose moderately in early Thursday stock market action after release of the consumer price index.
The CPI inflation rate eased to 6.5% from 7.1% the prior month vs. Wall Street expectations of 6.6%. The consumer price index was fell 0.1% on the month vs. the expected flat reading.
The core CPI rose 0.3% vs. November levels, as expected. The annual core inflation rate eased to...
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