In December, the third-month inflation rate increased to 2.9%. implications for rate cuts by the Fed.

In December, the third-month inflation rate increased to 2.9%. implications for rate cuts by the Fed.

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Due to rising food and energy prices, inflation rose for the third consecutive month in December, hitting a five-month high and highlighting the stalling of a hopeful deceleration in price increases that occurred last spring and summer.

Although analysts warn that President-elect Donald Trump's trade and immigration policies may push prices higher, an underlying measure of price growth slowed, suggesting that inflation may start to decline again through the first half of 2025.

According to the Labor Department's consumer price index, which is a general indicator of the expenses of goods and services, overall consumer prices rose 2.9% from a year ago, up from 2.7% in November. After six declines, that is the third uptick, bringing annual inflation to its highest level since July. Bloomberg polled economists, who predicted a rise to 2.9%. See more..