A sigh of relief as US inflation further moderated to 6.5% YoY in December from 7.1% in November. Core inflation (inflation excluding food and energy) too moderated to 5.7% YoY in December from 6% a month before. Sequentially CPI momentum decelerated with month on month CPI contracted by 0.1% in December from +0.1% in November.
Philadelphia Fed President Patrick Harker, speaking after CPI data release said, rate hikes of a quarter-percentage point “will be appropriate going forward,” following bigger increases throughout most of 2022. Separately, Fed’s Bullard said that Fed should raise interest rates above 5% expeditiously to ensure price pressures are subdued.
January 13, 2023