Higher Than Expected , Inflation , Could Signal Fed to Cut Interest Rates.<br />Yahoo Finance reports that consumer prices rose higher <br />than forecast in December, a sign investors hope will <br />signal the Federal Reserve to begin cutting interest rates.<br />Yahoo Finance reports that consumer prices rose higher <br />than forecast in December, a sign investors hope will <br />signal the Federal Reserve to begin cutting interest rates.<br />December's Consumer Price Index (CPI) showed <br />prices increasing by 0.3% over the month before. .<br />Compared to the same time in 2022, <br />prices increased over 3.4%.<br />Economists had predicted prices to <br />increase just 0.2% month over month <br />and an annual increase of 3.2%.<br />This print is aligned with <br />our view that disinflation <br />ahead will be gradual with <br />sticky services inflation, Ellen Zentner, Morgan Stanley <br />chief US economist, via Yahoo Finance.<br />Increased core inflation included the shelter <br />index, which increased 6.2% on an annual basis, <br />accounting for over half of the cost gains.<br />Rent prices also remain elevated, with the index <br />for rent and owners' equivalent rent rising 0.5% <br />on a monthly basis for the third consecutive month.<br />Rent prices also remain elevated, with the index <br />for rent and owners' equivalent rent rising 0.5% <br />on a monthly basis for the third consecutive month.<br />Other rising price indexes included motor <br />vehicle insurance, which rose 20.3% year over <br />year, the largest increase since 1976.<br />December also saw the food index rise <br />by 2.7% compared to the same time in 2022, <br />with egg prices jumping up 8.9% month over month.<br />December also saw the food index rise <br />by 2.7% compared to the same time in 2022, <br />with egg prices jumping up 8.9% month over month.<br />According to CMF FedWatch Tool, <br />there is a 69% chance that the <br />Fed cuts interest rates in March.<br />I don't think it's enough to <br />delay cuts. We're looking for <br />a march cut to kind of kick of <br />the cutting cycle. This kind of <br />keeps the door open, it definitely <br />doesn't slam the door shut, Stephen Juneau, Bank of America U.S. economist, via Yahoo Finance
