CPI report

2023 - 1 - 12

Dow futures climb more than 100 points after report shows inflation ... (CNBC)

Stock futures advanced after December's consumer prices report came in in line with economist expectations and showed inflation continues to cool.

The company now expects earnings for the quarter to come in between $1.12 and $1.17 per share, up from a previous range of 50 cents to 70 cents. [Disney](/quotes/DIS/) – Disney shares added more than 1% in early morning trading after the company elected independent director Mark Parker [as Chairman of the board](https://www.cnbc.com/2023/01/11/nike-chairman-mark-parker-will-become-chairman-of-disney.html). [Bed Bath & Beyond](/quotes/BBBY/) — The retailer advanced 16% premarket, [continuing to rally after a handful of meme stocks surged Wednesday](https://www.cnbc.com/2023/01/11/bed-bath-beyond-jumps-50percent-to-lead-last-gasp-rally-in-meme-stocks-amc-gains-15percent.html). The stock gained 1.3% in premarket trading. [American Airlines](/quotes/AAL/) — The airline gained 5% after [the company lifted its fourth quarter guidance](https://www.cnbc.com/2023/01/12/american-airlines-hikes-revenue-estimates.html), citing strong demand and high fares. See how each of the three futures indexes moved in the 30 minutes leading up to and following the release of the data at 8:30 a.m. The consumer price index fell 0.1% in December, matching a Dow Jones estimate. The futures market, however, has been pricing in a quarter point hike. In November, the report showed a 0.1% monthly gain and an annual pace of 7.1%, according to Dow Jones. The major futures indexes whipsawed as investors responded to December's CPI data, which came in in line with economist expectations. The stripped-down index was 5.7% higher than a year ago in December. Stock futures whipsawed in the minutes directly following the report's release before trending positive.

Inflation slowed further in December, the sixth month in a row (The Washington Post)

Federal Reserve officials, households and businesses alike are eager for signs that inflation will continue to recede in 2023.

But officials and American families alike have been desperate for signs that the Federal Reserve’s fight against inflation is working and that the economy will continue to stabilize in 2023. Inflation is still well above normal levels, and the economy remains vulnerable to shocks that could send prices back up. Inflation eased again in December, giving relief to households and businesses nationwide and offering more assurance to economic policymakers that price increases are pulling back after they soared to 40-year highs last year.

CPI report shows fall in gas prices helps inflation slow again in ... (USA TODAY)

Inflation eased substantially for a third month in December as tumbling gasoline prices and a moderating rise in grocery bills offset another surge in rent.

And the price of a haircut increased by 0.3% and 6.3% from a year ago. Breakfast cereal prices rose 1.1% and 13% from a year ago. Rent jumped 0.8% monthly and 8.3% over the past year. In December, the price of eggs leaped 11.1% and is up nearly 60% from a year ago as bird flu continues to thin chicken supplies. “It definitely frees up the money for something else.” Nationally, regular unleaded gasoline averaged $3.27 a gallon Wednesday, down from about $5 in June, according to AAA. But the cost of services has marched higher as more Americans return to traveling and other activities even as lingering worker shortages push up wages. Inflation has now eased since July but the pullback has accelerated the past three months. Stocks have been moving higher this week off expectations that CPI would continue to build off November’s decline. That lowered the annual increase from 6% to 5.7%. Still, the central bank is moving more cautiously. Americans have been struggling with an historic inflation spike since spring of 2021 as an easing pandemic stoked consumer demand even while supply chain bottlenecks spawned product shortages.

Prices fell in December as inflation continues to moderate (CNN)

Consumer prices decreased by 0.1% in December, the Bureau of Labor Statistics reported Thursday in its Consumer Price Index. The last time prices were lower ...

In addition to food prices still being on the rise, core inflation picked up 0.3% in December from November. Economists anticipate that the Fed will continue to slow the pace of its rate hikes in 2023. “If you take the month-over-month numbers since July and annualize that, the annually compounded monthly rate has been around 2%, right at [the Fed’s target],” Calhoun said. Most notably, food prices grew at the smallest monthly rate since March of 2021, BLS data shows. “We hit the lowest unemployment rate in 50 years in this country, and workers are seeing real wage increases.” “This month, food [at home] prices rose just two-tenths of a percent. Prices skyrocketed during the first half of the year, with [ inflation hitting 9.1% at its crest in June](https://www.cnn.com/2022/07/13/economy/cpi-inflation-june/index.html). “We have more work to do, but we’re on the right track.” “Demand for services really seems to be slowing down as well,” Bruun said. [rickety ride for Americans](https://www.cnn.com/2022/05/10/economy/single-parent-inflation-economy/index.html). The last time prices were lower than the previous month was May 2020. It’s the smallest annual increase since May 2021.

'A very favorable report' but 'underwhelming': Wall Street split on CPI report (Yahoo Canada Finance)

Price pressures abated last month to close out a year of historic inflation and the most aggressive monetary policy action in decades. December's Consumer Price Index (CPI) showed prices rose at an annual 6.5% and fell 0.1% over the month.

December CPI Report Live: Consumer Price Inflation Report Is Out ... (Penny Stocks)

That isn't likely to subside anytime soon, either. The latest round of CPI inflation data from December came out today, and in this update, we're going to break ...

The all items less food and energy index rose 5.7 percent over the last 12 months. For the month, the index decreased 0.3% prior to seasonal adjustment. The all items less food and energy index rose 6.0% over the last 12 months. The gasoline index decreased 1.5% over the span. The food index increased 0.3 percent over the month with the food at home index rising 0.2 percent. The gasoline index declined 9.4% over the month, following a 2.0% decrease in November. The food at home index rose 0.2% in December. Over the last 12 months, the all items index increased 6.5 percent before seasonal adjustment. The food index increased 0.5% over the month with the food at home index also rising 0.5%. The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in December on a seasonally adjusted basis, after increasing 0.1 percent in November, the U.S. Over the last 12 months, the all-items index increased 7.1% before seasonal adjustment. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1% in November on a seasonally adjusted basis, after increasing 0.4% in October, the U.S.

6 key takeaways from the January CPI report (Brookings Institution)

Inflation fell in December according to the latest CPI release. David Wessel, Wendy Edelberg, and Justin Wolfers discuss the new report.

“The broader conversation is really going to change its shape and nature as we move from the crisis period of inflation to the ‘Oh, so what,’ and even the ‘This is pretty normal,’ part of the cycle.” “I think the whole discussion is going to shift, the politics are going to shift, and the Fed is going to find itself in a very uncomfortable situation,” he said. The findings, interpretations, and conclusions in this report are solely those of its author(s) and are not influenced by any donation. So the point is that even the services side of the economy, while it’s got high rates of inflation, those rates of inflation are falling.” This is especially important given that the primary cost in providing services is wages, continued Wolfers. “For the last three months [core inflation] has risen at a rate of 3.1% at an annualized rate, and that is not all that far from what the Fed would target for that rate,” said Edelberg, noting that the Fed’s target for core CPI is around 2.5%, slightly higher than the Fed’s target of 2% on an alternative inflation measure (the price of personal consumption expenditures). So 3.1% is awfully good news.” “We’re never allowed to say we’ve won the war on inflation,” added Wolfers, “But what we do get to say is we feel enormously more relieved today, and that’s been true for each of the last three inflation prints.” “It’s quite possible for workers to catch up that ground without it feeding through to prices.” Rather than just looking at unemployment, Edelberg emphasized a different labor market indicator to watch for: overall employment gains: “What I’m very confident is that we can’t continue to see employment gains of more than 200,000 every month. She cited two other factors that haven’t received as much attention: Demand for food (people buying more, higher quality food) and food prices competing with other goods for which demand has also been high. [has expressed concern](https://www.brookings.edu/events/federal-reserve-chair-jerome-powell-the-economic-outlook-and-the-labor-market/) about the unemployment rate—that low unemployment would contribute to fast wage increases, making it difficult for the Fed to achieve its 2% inflation target without a rise in unemployment. [latest report](https://www.bls.gov/news.release/cpi.nr0.htm) from the Bureau of Labor Statistics with year-over-year inflation falling to 6.5%. “I think three months of declines officially makes a trend,” said Edelberg. This blog is a summary of a January 12, 2023 discussion on Twitter Spaces.