Inflation Ticks Up to 2.9%, but Underlying Price Gains Are Muted

Inflation Ticks Up to 2.9%, but Underlying Price Gains Are Muted·The Wall Street Journal

Markets cheered a December inflation report that suggested underlying price pressures are easing, but the Federal Reserve still isn’t likely to cut interest rates anytime soon given President-elect Donald Trump’s plans for the economy. The overall consumer-price index came in relatively hot, rising 2.9% over the year, the Labor Department said Wednesday. The index rose 0.4% from the previous month, driven by a 4.4% jump in gas prices.

Advertisement