Analysis: The US CPI increase in December was slightly higher than expected, it is predicted that the Federal Reserve will not cut interest rates in January

ChainCatcher News, according to Jinshi reports, the US CPI increase in December was slightly higher than expected due to rising energy product costs, indicating that inflation is still on the rise. This aligns with the Federal Reserve's expectation of smaller interest rate cuts this year.

The overall US CPI rose by 0.4% monthly and 2.9% annually in December; core CPI has risen by 0.3% for four consecutive months, with an annual increase of 3.2%. In the second half of last year, efforts to pull back inflation rates to the Fed's target of 2% encountered obstacles. A strong economy, threats of widespread tariffs on imported goods and large-scale deportation of undocumented immigrants also prompted the Fed to expect smaller interest rate cuts this year.

In addition, Trump has also promised tax cuts which will stimulate the economy; consumer inflation expectations soared in January as households worry about tariffs increasing commodity prices. It is expected that the Federal Reserve will not cut interest rates in January.