Inflation came in at 5.9% in December, down from 6.5% in November. The December reading marked the lowest inflation rate since May. Looking at the details of the release, home and utility prices grew at a more moderate rate in December. Transportation prices also rose at a lower rate.
However, the trend indicated a slight uptick, with annual inflation averaging 5.8% in December (November: 5.7%). Meanwhile, core inflation rose to 5.8% in December from 5.7% in November.
Finally, consumer prices rose 0.08% in December from the previous month, swinging back from November’s decline of 0.16%.
FocusEconomics Consensus forecast committee members expect inflation to average 4.5% in 2023, which is 0.2 percentage points higher than last month’s estimate. In 2024, they expect inflation to average 2.4%.