Breaking: US annual CPI inflation drops to 6.5% in December as expected
The US Bureau of Labor Statistics reported on Thursday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 6.5% on a yearly basis in December from 7.1% in November.
This reading came in line with the market expectation. On a monthly basis, the CPI declined by 0.1% following November's increase of 0.1%.
Further details of the publication revealed that the Core CPI, which excludes volatile food and energy prices, edged lower to 5.7% on a yearly basis from 6% as expected. Finally, Core CPI rose by 0.3% on a monthly basis.
Market reaction
The US Dollar Index edged slightly higher with the initial reaction but seems to be having a difficult time gathering recovery momentum. As of writing, the index was down 0.2% on the day at 103.05.