Washington– A key measure of inflation accelerated in December, a sign that many prices are still rising more quickly than most Americans would prefer — and faster than the Federal Reserve’s target of 2% annually.
The Commerce Department said Friday that prices rose 0.4% in December from the previous month, compared to 0.2% in November. In a report Which was delayed by a six-week government shutdown last fall. Compared to last year, inflation rose by 2.9% in December, compared to 2.8% in November.
Core prices – which exclude volatile food and energy categories – rose 0.4% in December from the previous month, compared to 0.2% in November. Core prices jumped 3% in December from a year ago, faster than November’s 2.8% increase.
The numbers show that inflation remains high, even as it has declined from its peak of near 7% in 2022. With many prices continuing to rise more rapidly than before the pandemic, the report points to a major reason why many Americans remain dissatisfied with the economy, even as unemployment remains low and growth is strong.
Friday’s report also showed that consumers continued to spend at a strong rate in December, when spending rose 0.4% from the previous month, the same as in November.