The Clap
The consumer price index (CPI) dropped by 0.1% in December compared to November 2022, in line with analysts’ expectations.
What
Despite the drop, the CPI still increased by 6.5% YoY, as the cost of living continues to rise.
In addition, core CPI, which excludes volatile food and energy prices, also increased by 5.7% YoY.
So What
Markets did not react to the inflation figure, as it fell in line with analysts’ expectations. In addition, the small drop acted as another indicator of cooling inflation. Some economists still feel, however, that a CPI figure of 6.5% is still high.
Now What
Investors will be watching the Fed’s decision regarding interest rates on Friday, Jan 13.
