Prices that consumers pay for a variety of goods and services rose again in December but closed out 2024 with some slightly better news on inflation.
The Consumer Price Index rose 0.4% month over month, bringing the 12-month inflation rate to 2.9%, the Bureau of Labor Statistics reported Wednesday. Economists surveyed by Dow Jones were looking for readings of 0.3% and 2.9%, respectively.
However, excluding food and energy, the annual core CPI rate was 3.2%, a slight decline from the previous month and slightly better than expectations of 3.3%. The core index rose 0.2% month-on-month, also 0.1 percentage point lower than expected.
Most of the rise in the CPI came from a 2.6% increase in energy prices for the month, driven by a 4.4% rise in gasoline. That was responsible for about 40% of the index's gains, according to the BLS. Food prices also rose by 0.3% during the month.
On an annual basis, food rose 2.5% in 2024 while energy fell 0.5%.
Shelter prices, which make up about a third of the CPI's weight, rose 0.3% but were up 4.6% from a year ago, the smallest one-year increase since January 2022.
Stock market futures rose after the release while Treasury yields fell.
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