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December core CPI increased 0.24% month-over-month, below expectations, and the year-over-year rate edged up to 2.64%.
Let’s take a closer look at Goldman Sachs Research’s breakdown of the latest data.
The airfares, hotels, and apparel components rebounded sharply after shutdown-related distortions to data collection weighed on their prices in October and November.
Increases in the rent and owners’ equivalent rent components rebounded to paces similar to their Q3 averages, after a methodological feature to assume no inflation in October—when data could not be collected—led shelter inflation to be understated across October and November.
On the softer side:
Core non-housing services prices rose 0.29% in December. Headline CPI rose 0.31% (2.68% year over year), as energy prices rose 0.3% and food prices rose 0.7%.
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