Inflation accelerated in the United States

Consumer prices inflation accelerated in the United States in December.

Based on the consumer price index published by the Ministry of Labor on Wednesday, inflation was 2.9 percent. In November, the annual change in inflation was 2.7 percent.

From the previous month, consumer prices rose by 0.4 percent.

In a preliminary survey by the Reuters news agency, economists estimated that consumer prices rose by 2.9 percent from a year ago and by 0.3 percent compared to November.

In December energy became cheaper by 0.5 percent from a year ago. On the other hand, food became more expensive by 2.5 percent, services by 4.4 percent and housing by 4.6 percent.

Core inflation, closely monitored by the central bank and economists, was 3.2 percent. In November, it was 3.3 percent.

Core inflation is an important measure because the direct impact of sensitively changing energy and food on consumer prices has been removed from it. It tells better about the wide range of inflation.

Stateside stocks and federal bonds rose after the inflation data was released, likely due to a slowdown in core inflation.

In recent weeks, financial markets have estimated that the central bank will moderate its interest rate cuts. The reason is that the next president Donald Trump’s economic policy is feared to accelerate inflation.

According to the central bank’s price stability objective, inflation should be two percent on average over a long period of time.