The US inflation rate fell to 6.5% in December from 7.1% in November, in line with economists’ expectations. This is a decrease from the peak of 9.1% recorded in June. That decline is attributed to the 9.4 percent drop in the price of gasoline compared to December 2021.
The yield on the 10-year US Treasury fell to 3.4% from 3.5% on Thursday, and the dollar index fell 0.51% to $102.66. This was in response to data from the Bureau of Labor Statistics, which revealed that December prices were 0.1% lower than the previous month, though 6.5% higher than the same period a year earlier.
The core consumer price index (CPI), which excludes the volatile food and energy components, rose 5.7% year-on-year and 0.3% month-on-month, both in line with government forecasts. Bloomberg economists. The report is expected to influence the Federal Reserve’s next monetary policy meeting, which starts on Jan. 31. Central bankers have already discussed its potential implications.
Stocks have rallied in recent trading as speculators trust the CPI statement affirms an evolving pattern of expansion. Financial specialists have been eyeing information showing a cooling in the expansion in recent months, hoping this could legitimize the Federal Reserve to slow the rise in borrowing costs further.
US stocks rose on Thursday as the market was pricing in a recent inflation report that indicated that prices had risen at a slow year-on-year rate in December, in agreement with economic experts’ estimates.
According to Huw Roberts, chief analyst at Quant Insight, investors will listen carefully to Federal Reserve officials’ speeches, including Minneapolis Fed Collins and Neel Kashkari. Also, one will observe the Labor Cost Index and other economic indicators to understand how the economy will perform shortly.
Meanwhile, news sources in the United States report that confidential documents have been discovered in President Joe Biden’s garage, located in Wilmington, Delaware. These records date back to when Biden was the president of Barack Obama’s administration. The president himself confirmed this. On Monday 9, the White House acknowledged that other confidential documents were in a former personal office of the president, the Penn Biden Center in Washington DC.
The documents were disclosed when attorneys on behalf of the president were packing the stored materials into a secure closet in preparation for the evacuation of the offices.
As regards the dollar exchange rate, the greenback is losing ground against the euro, which has risen to 1.0818 dollars.