US inflation steady in December as core CPI remains at slowest pace since 2021

Core Inflation and Consumer Prices - The Consumer Price Index (CPI) for All Urban Consumers rose 2.7% year-over-year through December, matching economists' forecasts [1] - Core inflation, excluding food and energy, increased by 0.2% in December and is up 2.6% from a year earlier, marking the slowest pace since March 2021 [3] Monthly Price Changes - Monthly prices increased by 0.3%, with housing-related costs being the largest contributor, as the shelter index rose 0.4% [1][5] - The food index saw a 0.7% increase, with significant gains across various food categories, while meat prices fell by 0.2% due to an 8.2% decline in egg prices [6] Energy Prices - Energy prices overall rose by 0.3% in December, with natural gas prices increasing by 4.4% and gasoline prices declining by 0.5% [7] Market Expectations and Federal Reserve Policy - The inflation report did not alter expectations for near-term monetary policy, with a 95% probability that the Federal Reserve will keep interest rates unchanged in its upcoming meeting [9] - The report follows a jobs report indicating a decrease in the unemployment rate, further reducing pressure on the Fed to adjust policy quickly [10]