US consumer inflation data for December delivered a largely reassuring signal. Headline CPI rose 0.3% mom, in line with expectations. Core CPI increased just 0.2%, undershooting forecasts for a 0.3% gain.
Shelter was the dominant driver of monthly inflation, rising 0.4% and accounting for the largest share of the overall increase. Food prices were also firm, with the food index climbing 0.7% on the month, matching gains in both food at home and food away from home. Energy prices edged up 0.3% in December, contributing modestly to headline pressures.
On an annual basis, CPI was unchanged at 2.7% yoy, matched expectations. CPI core unchanged at 2.6% yoy, below expectation of 2.7% yoy. Energy prices rose 2.3% yoy, while food inflation increased 3.1%.
