Analysis: The U.S. December CPI increase slightly exceeded expectations, and the Federal Reserve is not expected to cut interest rates in January

ChainCatcher news, according to Jinshi reports, the U.S. December CPI rose slightly above expectations due to rising energy product costs, indicating that inflation is still on the rise, which aligns with the expectation of a smaller rate cut by the Federal Reserve this year.

The overall CPI in the U.S. for December increased by 0.4% month-on-month and 2.9% year-on-year; the core CPI has risen by 0.3% for four consecutive months, with a year-on-year increase of 3.2%. Efforts to bring the inflation rate back to the Federal Reserve's 2% target faced obstacles in the second half of last year. Strong economic performance, the threat of widespread tariffs on imported goods, and large-scale deportations of undocumented immigrants have also led the Federal Reserve to expect a smaller rate cut this year.

Additionally, Trump has promised tax cuts, which will stimulate the economy; consumer inflation expectations surged in January, with households concerned that tariffs will raise product prices. The Federal Reserve is expected not to cut rates in January.