The US is Making Progress on Inflation, Depending on How You Look at It
Another month, another Consumer Price Index inflation report, the show-stopping data dump of our inflation-weary universe.

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Another month, another Consumer Price Index inflation report, the show-stopping data dump of our inflation-weary universe.
This one pointed to small progress in the inflation fight, with “core” prices in the US — which exclude volatile food and energy costs — increasing 0.2% in December from November, a slight deceleration from the 0.3% month-over-month increase reported in the last batch of monthly data. It may not be much, but we’ll take it.
Core Workout
On an annual basis, core CPI rose 3.2% in December, a welcome decrease from the 3.3% year-over-year increase that had lingered for the prior four months. In fact, Wednesday’s data trove showed the first annual core CPI deceleration since July.
But you’d be forgiven for not noticing the slight downtick when checking your latest credit card statement. That’s because headline CPI figures — which do factor in energy and food — showed a slight uptick in inflation in December, with a couple key culprits mostly to blame:
- Headline CPI was up 0.4% month-over-month in December, an increase from November’s 0.3% figure. On an annual basis, CPI increased 2.9% in the last month of 2024, up from 2.7% in November.
- Gas prices were up 4.4% month-over-month (though down about 3% year-over-year). While grocery prices have barely budged overall, eggs were up 3.2% month-over-month, and a whopping 37% year-over-year (is it time to get anxious about bird flu?).
Across the Pond: Recent data out of Europe has been a bit of a mixed bag. The United Kingdom on Wednesday unveiled its latest round of inflation data, with consumer prices up 2.5% in December year-over-year, a deceleration from November’s 2.6% figure. Last week, results out of Germany showed that nation going the other way, with prices jumping 2.8% year-over-year in December, an acceleration from the month prior — adding even more turbulence to Berlin’s politics. And of course, everything is liable to change once the Trump 2.0 era officially kicks off on Monday. Buckle up.