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MNI: US December CPI Cools For 6th Straight Month

U.S. price pressures continued to moderate in December as CPI fell 0.1% in the month and core CPI rose 0.3%, bringing the year-over-year rates to 6.5% and 5.7%, respectively, and matching market expectations. Headline CPI hit its lowest since October 2021 and should keep the Federal Reserve on track to end rate hikes early this year. (See: MNI INTERVIEW-Fed Could Pause Hikes As Early As March-Sahm)

Philadelphia Fed President Patrick Harker said Thursday that few more quarter-point increases this year should bring the Federal Reserve's benchmark overnight interest rate to a sufficiently high level to slow the economy and inflation (MNI: Fed's Harker Endorses 'A Few More' 25bp Rate Hikes)

Energy prices decreased 4.5% over the month and food increased 0.3%. Core CPI excluding shelter fell 0.1%, same as in November and October, but the shelter index showed surprising strength. Both owners' equivalent rent and tenants' rent adding 0.8% in the month, a tenth or two higher than analyst estimates. OER rose 0.7% in November and tenants' rent has hovered around 0.8% for a few months.

MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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