Kudlow panelists John Carney and Brian Bremberg discuss job growth and the Fed's actions.
Inflation rose again in December as persistently high prices continued to weigh on consumers' finances ahead of the Federal Reserve's next interest rate decision.
The Labor Department said Wednesday that the Consumer Price Index (CPI), a broad measure of the prices of everyday items such as gasoline, groceries and rent, rose 0.4% in December, bringing the yearly total up to 2.9%.
The month-on-month rate was slightly higher than expected by economists compiled by LSEG, but the annual rate was in line with expectations. The headline figure rose compared to November's 2.7%, with monthly price increases continuing at the same pace as the previous month.
So-called core prices, which exclude more volatile measures of gasoline and food to better assess price trends, rose 0.2% on a monthly basis in December, down from a 0.3% rise the previous month. Compared to the same month last year, it increased by 3.2%.
The report showed that inflationary pressures persist in the U.S. economy, despite progress made over the past year in bringing inflation closer to the Federal Reserve's 2% target.
High inflation is putting severe economic pressure on most American households, forcing them to pay for necessities like food and rent. Price increases are especially difficult for low-income Americans. That's because they tend to spend more of their already stretched salaries on necessities and have less flexibility to save money.
Energy costs accounted for more than 40% of the monthly CPI increase, and the Bureau of Labor Statistics' energy index rose 2.6% in December, as energy prices have shown little change in recent months. Gasoline prices rose 4.4% in December.
Food prices in December also increased by 0.3% from the previous month. Both meals eaten at home and meals eaten away from home increased by 0.3% last month.
Housing costs rose 0.3% in December, the same as the rise in November. The shelter index has increased 4.6% over the past year, the smallest 12-month increase since January 2022.
This is a developing story. Please check back for the latest information.
