New York: The consumer price index (CPI) accelerated to 2.9 percent in December from a year ago, up from 2.7 percent in November, the US Labor Department said in a statement.
US consumer inflation rose for a third straight month in December as energy prices rose, according to government data, adding pressure on the Federal Reserve to pause rate cuts.
Stocks surged after the latest consumer price index report showed core inflation unexpectedly slowed in December. The consumer price index showed that core inflation, which excludes food and energy, rose 3.2 percent, the Bureau of Labor Statistics reported.
Energy prices, particularly gas and fuel costs, accounted for 40 per cent of the overall monthly increase. Food prices also remained elevated as key staples such as meat and eggs continued to face pressures from weather and disease, respectively, according to a CNN report.
“Economists were expecting inflation to pick up 0.3 percent from November and notch a 2.8 percent annual increase, primarily due to expectations around higher energy and food prices,” the report mentioned.
Meanwhile, fourth-quarter earnings reporting got off to a positive start this week. JPMorgan Chase shares rose slightly after the bank reported an EPS and revenue beat, which was driven by strong fixed income trading and investment banking results. Shares of Goldman Sachs increased more than 6 percent and Wells Fargo shares jumped 5.3 percent.
