What's the opposite of inflation? Deflation, and that's exactly what happened in December, according to the latest consumer price index (CPI). Prices fell 0.1 percent last month, bringing the year-over-year rate to 6.5 percent, down from a peak of 9.1 percent last June.
Here are the highlights:
Energy contributed the biggest share to the decline, with prices falling 4.5 percent. Under that category, fuel oil saw the biggest drop, falling 16.6 percent.
After energy, automobiles saw the most deflation in December. The price of new vehicles fell 0.1 percent, and the price of used vehicles fell 2.5 percent.
Food prices, meanwhile, ticked up 0.3 percent. That's the smallest increase in the last six months. Shelter costs also jumped a sizable 0.8 percent, up from 0.6 percent in November.
The report comes as a debate rages over whether the U.S. economy can achieve a so-called landing after several large rate hikes from the Federal Reserve. While the central bank has signaled moderation, any shift in the inflation narrative could change its tone.
Markets expected and had priced in the CPI drop, however, so it's possible stocks won't move drastically in response to the data. Futures rose slightly after the release.
Michael Harris, NYSE global head of capital markets shares what to expect from IPOs in 2024, including A.I. excitement and why interest rate cuts are always helpful.
Lacy Garcia, Founder & CEO of Willow, shares why women, traditionally underserved by fintech, are looking for trust and a personal relationship from their financial advisor.
Alexander Reed, CFA and CIO for Envisage Wealth, breaks down why he thinks rates could stay higher for longer and why real estate, utilities, and regional banks are sectors to avoid.
Big brands that have relied on TikTok videos to reach younger consumers do not appear to be panicking as they wait to see what happens. But they have started planning.
It's been 15 years since the last fatal crash of a U.S. airliner, but you wouldn't know that from a torrent of flight problems that made news in the last three months.
Abortion opponents want the high court to ratify a ruling from a conservative federal appeals court that would limit access to a medication called mifepristone, which was used in nearly two-thirds of abortions last year.
Annie Chechitelli, chief product officer at Turnitin, breaks down how students and teachers alike can learn from artificial intelligence – while still maintaining academic integrity.
Neiman Marcus Group CEO Geoffroy van Raemdonck talks luxury shopping and TikTok, why the company prefers to be private for now, and the benefits of flexible work arrangements.
