US inflation rises in December

US inflation rises in December

Mubasher: US overall inflation growth slowed in December, matching economists’ forecasts, while core inflation rose significantly, the US Bureau of Labor Statistics reported on Friday.

The US consumer price index (CPI) grew on a seasonally adjusted basis by 0.1% in December, compared with a 0.4% increase in the previous month.

The overall prices index posted a year-on-year increase of 2.1% in December, down from a 2.2% annual growth in the previous month.

Meanwhile, core prices, which excludes the volatile food and energy components, accelerated 0.3% month-on-month in December, marking their biggest rise since January, while annual growth reached 1.8%.

The increase in underlying prices was driven by higher prices for new motor vehicles, used cars and trucks, and motor vehicle insurance.

By 02:13 pm GMT, the EUR/USD pair jumped 0.78% to $1.2126.