Inflation resurged in December

The consumer price index increased 3.4% from the year prior in December, an acceleration from November’s 3.1%. Subsequently, consumer prices increased by 0.3% last month.

While some prices increased, particularly for rent, auto insurance, and dentist visits, others, such as furniture, toys, and sporting goods, saw a decline.

Inflation-adjusted wages rose by 0.8% in 2023, marking the first real wage gain in three years. 

Though lower than 2022’s 6.5%, the December acceleration suggests persistent inflation. However, core inflation was at 3.9% through December, down from 4% in 2022.

It remains to be seen what the Fed officials will decide this year when it comes to rate cuts.