Inflation is steady. Grocery prices are not

From Quartz.

U.S. inflation cooled slightly in December, highlighting easing price growth alongside persistent grocery pressures. Headline CPI met expectations as used car prices fell, while core CPI rose 0.2%, keeping U.S. inflation near the Federal Reserve’s 2% goal. Food prices increased again, with five of six grocery categories up, including other food at home (1.6%), dairy (0.9%), cereals and bakery (0.6%), fruits and vegetables (0.5%), and nonalcoholic beverages (0.4%). Shelter costs continued to rise at a slower pace, with primary residence rents posting the smallest year‑over‑year gain since 2021; energy prices edged up. Analysts largely expect interest rates to remain unchanged as policymakers acknowledge cooling inflation but avoid declaring victory amid political pressure. The report underscores easing inflation alongside household strain from elevated grocery costs.


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