Revised US December CPI Data Reveals Modest Price Rise, Unlikely to Impact Fed’s Rate Decision

10 February 2024 - 239 views

Revised US December CPI data shows that monthly consumer prices rose less than initially reported, with a 0.2% increase instead of 0.3%. However, November’s CPI was revised higher to show a 0.2% increase rather than the previously estimated 0.1%. The revisions resulted from the annual recalculation of seasonal adjustment factors. The market reaction saw U.S. stock futures extend slight gains, while bond yields fell. Analysts believe the revisions will not impact the Federal Reserve’s decision to cut rates.

[Inflationary Scenario]
[Significance: Moderate]

1. Revised government data shows that U.S. monthly consumer prices rose 0.2% in December, lower than the initial estimate of 0.3%.

2. November’s consumer price index was also revised, showing a 0.2% increase instead of the previously estimated 0.1%.

3. The revisions were a result of the annual recalculation of seasonal adjustment factors.

4. Market reaction: U.S. stock futures slightly gained, U.S. Treasury 10-year yield fell to 4.1618%, and the dollar was 0.08% lower.

5. Analysts believe the revisions are not significant enough to impact the Federal Reserve’s monetary policy decision, as core inflation remained unchanged at 0.3%.