US inflation rate rises for third month in December

The annual inflation rate in the U.S. increased for the third consecutive month, reaching 2.9% in December 2024, up from 2.7% in November, aligning with market expectations.

US inflation rate rises for third month in December

This year-end rise was partly influenced by low base effects from the previous year, particularly in the energy sector. Energy costs declined less significantly (-0.5% compared to -3.2% in November), primarily due to smaller drops in gasoline (-3.4% vs -8.1%), fuel oil (-13.1% vs -19.5%), and natural gas prices (4.9% vs 1.8%). Inflation also picked up for food (2.5% vs 2.4%) and transportation (7.3% vs 7.1%), while price declines for new vehicles moderated (-0.4% vs -0.7%). Conversely, inflation slowed for shelter (4.6%, the lowest since January 2022, vs 4.7%), and prices for used cars and trucks continued to drop (-3.3% vs -3.4%).

Monthly figures

On a monthly basis, the Consumer Price Index (CPI) rose by 0.4%, the largest increase since March and above the forecast of 0.3%. Energy prices rose 2.6%, contributing over 40% of the monthly increase, driven primarily by gasoline (4.4%). Additionally, food prices rose by 0.3%, and shelter costs also increased by 0.3%.