Core CPI inflation was still an elevated 5.7% in December but, with another more muted 0.3% m/m gain, the three-month annualised rate fell to a 20-month low of 3.1%. Admittedly, the latter is still slightly above the rate consistent with the Fed hitting its 2% target for the alternative PCE measure, but it nevertheless represents a massive improvement from the peak of 7.9% last June.
Note: We’ll be discussing key takeaways from the US CPI release and their implications for policy in a 20-minute briefing today at 10:00 EST/15:00 GMT. Click here to register for this event
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