The News
US inflation ticked up in December, but a key metric measuring only “core” costs cooled, in welcome news for markets.
In the last inflation report of President Joe Biden’s term, the core consumer price index — which excludes the often-volatile food and energy prices, making it a better indicator to many economists — eased for the first time in six months.
While inflation remains above the Federal Reserve’s 2% target, the cooling boosted expectations of an interest rate cut this year, leading US bond yields to drop after a surge at the start of the year sparked global economic worries.
The latest data could relieve pressure on overseas bond markets, too, analysts said: UK yields also tumbled Wednesday.
AD