December CPI: Inflation Stays Elevated While Fed Pauses Rate Cuts
‘The Big Money Show’ panel discusses whether small businesses are being squeezed by inflation, high borrowing costs, and corporate dominance as Wall Street profits soar and bankruptcies on Main Street hit record highs.
Inflation rose steadily in December, remaining persistently above the Federal Reserve’s target rate. This situation has prompted policymakers to consider the potential for interest rate cuts amid ongoing economic uncertainty.
According to the Bureau of Labor Statistics, the consumer price index (CPI)—a comprehensive measure of the costs of everyday goods such as gasoline, groceries, and rent—rose by 0.3% on a monthly basis in December. Year-over-year, the CPI held steady at 2.7%.
Both of these figures were lower than what economists surveyed by LSEG had anticipated. The so-called core prices, which exclude the more volatile categories of gasoline and food to provide a clearer picture of price growth trends, increased by 0.2% from the previous month and 2.6% from a year ago. These numbers also fell slightly short of economists’ expectations, which were 0.3% and 2.7%, respectively.
The ongoing inflationary pressures have raised concerns among small business owners, who are grappling with rising costs and decreased consumer spending. As Wall Street continues to report soaring profits, the stark contrast with the struggles faced by Main Street businesses has become increasingly evident. Many small enterprises are finding it difficult to navigate the financial landscape, leading to a surge in bankruptcies.
The Federal Reserve’s response to these economic indicators will be crucial in shaping the future landscape for both consumers and businesses. As policymakers weigh the implications of interest rate adjustments, the focus remains on balancing inflation control with the need to support economic growth.
This is a developing story. Please check back for updates.
‘The Big Money Show’ panel discusses whether small businesses are being squeezed by inflation, high borrowing costs, and corporate dominance as Wall Street profits soar and bankruptcies on Main Street hit record highs.
Inflation rose steadily in December, remaining persistently above the Federal Reserve’s target rate. This situation has prompted policymakers to consider the potential for interest rate cuts amid ongoing economic uncertainty.
According to the Bureau of Labor Statistics, the consumer price index (CPI)—a comprehensive measure of the costs of everyday goods such as gasoline, groceries, and rent—rose by 0.3% on a monthly basis in December. Year-over-year, the CPI held steady at 2.7%.
Both of these figures were lower than what economists surveyed by LSEG had anticipated. The so-called core prices, which exclude the more volatile categories of gasoline and food to provide a clearer picture of price growth trends, increased by 0.2% from the previous month and 2.6% from a year ago. These numbers also fell slightly short of economists’ expectations, which were 0.3% and 2.7%, respectively.
The ongoing inflationary pressures have raised concerns among small business owners, who are grappling with rising costs and decreased consumer spending. As Wall Street continues to report soaring profits, the stark contrast with the struggles faced by Main Street businesses has become increasingly evident. Many small enterprises are finding it difficult to navigate the financial landscape, leading to a surge in bankruptcies.
The Federal Reserve’s response to these economic indicators will be crucial in shaping the future landscape for both consumers and businesses. As policymakers weigh the implications of interest rate adjustments, the focus remains on balancing inflation control with the need to support economic growth.
This is a developing story. Please check back for updates.
