The U.S. Consumer Price Index for December came in at 6.5% from a year ago, in line with expectations by economists. On a monthly basis, consumer prices fell 0.1%, the largest month-over-month decrease since April 2020.
In the meantime, the Core Consumer Price Index, which excludes the volatile oil and food prices, was also in line with expectations for an increase of 5.7% from a year ago after gaining 6.0% in November. Core inflation rose 0.3% last month after rising 0.2% in November.
In December, gasoline prices fell 12.5%, according to data from the U.S. Energy Information Administration.
Meanwhile, initial jobless claims for the week ended January 7 fell 1,000 to a seasonally adjusted 205,000, slightly lower than economists forecast for 215,000 claims.
After the announcement of December inflation, the forecast for Fed fund futures are now fully expected a 25 basis points interest rate hike by the U.S. central bank on February 1st.