Price growth slowed slightly and spending rose in December, according to the latest data from the Bureau of Economic Analysis.
- Consumer prices rose 0.2% in December, higher than the 0.1% rise in November and the third-highest level in the last 6 months.
- Consumer prices held at 2.6% when compared to the same time last year.
Right On Target. Economist were spot on with their projection on what would happen with the monthly rise and the annual rate holding in December.
Core. Core prices rose 0.2% in December, up from 0% in November and the second-highest level in the last 6 months.
- The annual rate slowed to 2.9% in December, down from 3.2% in November and the lowest level since March 2021.
Spending and Income. Consumer spending jumped 0.7% in December, up from 0.4% in November and the highest level since September.
- Income did not rise as much as spending with a 0.3% rise in December, down from 0.4% in November but still higher than the 0.2% rise in prices.