US inflation accelerates, reducing bets on Fed rate cuts

Data shows that US inflation accelerated at the end of 2023, challenging market expectations of the Federal Reserve's imminent interest rate cuts. The unadjusted CPI for December in the US recorded a year-on-year increase of 3.4%, reaching a new high since September 2023; the unadjusted CPI for December in the US recorded a month-on-month increase of 0.3%, also reaching a new high since September 2023. The year-on-year growth rate of the unadjusted core CPI for December in the US slightly decreased to 3.9%, while the monthly rate for core CPI remained at 0.3%. Economists believe that compared to overall CPI, core indicators provide better measurement of inflation trends.