US Core Consumer Prices Mark Big Gainer

US Core Consumer Prices Mark Big Gainer

US Core Consumer Prices Mark Big Gainer

US consumer prices recorded their largest increase in 11 months in December on strong gains in the cost of rental accommodation and healthcare, bolstering expectations that inflation will accelerate this year.

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The strengthening domestic demand was underscored by other data Friday showing retail sales rising at a solid pace in December. The reports probably will keep the Fed on course to increase interest rates in March.

They raised the prospects of policy tightening this year, especially against the backdrop of a $1.5-T package of tax cuts passed by the Congress and signed into law by President Donald Trump last month.

The Fed is forecasting 3 rate increases this year. It raised borrowing costs 3X in Y 2017.

The Labor Department said its Consumer Price Index, aka CPI, excluding the volatile food and energy components, rose 0.3% last month as prices for new and used cars and trucks and motor vehicle insurance increased.

That was the biggest advance in the  core CPI since January 2017 and followed a 0.1% gainer in November. The core CPI increased 1.8% in the 12 months through 31 December, picking up from 1.7% in November.

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