WASHINGTON— The Consumer Price Index rose 0.4% in December from November and finished the year up 2.9%, the Bureau of Labor Statistics reported.
The index for energy rose 2.6% in December, accounting for over 40% of the monthly all items increase, the Bureau said.
The gasoline index increased 4.4% over the month. The index for food also increased in December, rising 0.3% as both the index for food at home and the index for food away from home increased 0.3% each. The index for all items less food and energy rose 0.2% in December, after increasing 0.3% in each of the previous four months.
"Headline inflation rose due to volatile energy prices, while core inflation eased. Although less concerning than November's report, underlying pressures persist, with elevated service prices and rising commodity prices after months of decline,” said Dawit Kebede, America's Credit Unions senior economist. “This supports the Federal Reserve's decision to hold rates steady, given the solid economy, strong labor market, and inflation remaining above target. Credit unions can expect improved loan growth in 2025, with a lower fed funds rate, albeit with fewer cuts than anticipated."