The BLS released the December 2024 CPI report and we’ll let this chart speak for itself and let you decide if this is good or bad. Note that positive (deflation) is green and negative (inflation) is red.
They say a picture is worth 1000 words so we hope that all the red on this chart shows where we are with inflation. We’re not sure why the market was “cheering” the positive report because inflation was mostly bad. Additionally, oil has been rising in price throughout December in January and this will add fuel to the inflation fire.
Here’s the official post from the BLS:
CONSUMER PRICE INDEX - DECEMBER 2024
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in December, after rising 0.3 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the
last 12 months, the all items index increased 2.9 percent before seasonal adjustment.
The index for energy rose 2.6 percent in December, accounting for over forty percent of the monthly all items increase. The gasoline index increased 4.4 percent over the month. The index for food also increased in December,
rising 0.3 percent as both the index for food at home and the index for food away from home increased 0.3 percent each.
The index for all items less food and energy rose 0.2 percent in December, after increasing 0.3 percent in each of the previous 4 months. Indexes that increased in December include shelter, airline fares, used cars and trucks,
new vehicles, motor vehicle insurance, and medical care. The indexes for personal care, communication, and alcoholic beverages were among the few major indexes that decreased over the month.
The all items index rose 2.9 percent for the 12 months ending December, after rising 2.7 percent over the 12 months ending November. The all items less food and energy index rose 3.2 percent over the last 12 months. The
energy index decreased 0.5 percent for the 12 months ending December. The food index increased 2.5 percent over the last year.
Stay tuned, stay profitable and stay solvent…