- ORIGINAL NEWS
Inflation in December was even lower than first reported, the government says
- SUMMARY
The government revised the consumer price index (CPI) data, showing that inflation was lower than initially reported in 2023.
This means price increases slowed down.
The core CPI, which excludes food and energy, remained unchanged at 0.3%.
The revisions also showed that CPI accelerated less than expected in the fourth quarter but higher in the second half.
This news indicates that inflation is moderating, giving the Federal Reserve more room to consider cutting interest rates later in the year.
However, the Fed focuses more on the personal consumption expenditures (PCE) price index as its primary inflation gauge.
Traders still anticipate the Fed to maintain current interest rates in March before initiating rate cuts later in the year.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“The revisions are done as a matter of course for the BLS, but garnered extra attention this year after the market reacted sharply to last year’s changes.”
“The headline November reading was revised higher, up 0.2% versus the initial 0.1% estimate.”
Negative
“Fed Governor Christopher Waller, in particular, had called attention to the 2022 revisions, sparking market attention for the latest round.”