The December 2023 consumer price index (CPI) report. Consumer price index was higher-than-expected inflation rate and the Fed’s response. The CPI rose 0.3% in December and 3.4% year-over-year. This was higher than the estimated 0.2% and 3.2%. Excluding food and energy, the core CPI also rose 0.3% for the month and 3.9% from a year ago. Shelter costs were the main driver of the increase. The Fed is watching inflation closely and may start cutting rates later this year if inflation continues to decline.
I still predict 3 rate drops during the course of next year. The current 30 year fixed rate is 6.69%.
Thanks for reading,
Chris
