In December 2024, the US CPI Surges Price Index (CPI) recorded a 0.4% month-over-month rise, marking the most significant increase since March. Energy prices played a pivotal role, surging by 2.6% and contributing over 40% of the overall monthly growth. The primary driver was gasoline, which jumped 4.4%, reflecting the ongoing volatility in global energy markets.

Food and Shelter Costs Continue to Rise

Food prices climbed by 0.3% in December, matching the increase in shelter costs. Rising grocery bills and housing expenses have been persistent contributors to inflation, impacting the average household budget. These steady increases highlight the ongoing challenges of affordability for many families across the country.

Additional Price Hikes in Key Sectors

Other sectors also experienced notable price increases. Airline fares rose by 3.9%, reflecting seasonal travel demand, while used cars and trucks saw a 1.2% uptick. New vehicle prices edged up by 0.5%, and modest increases were observed in motor vehicle insurance and medical care, both rising 0.1%.

Read More : US Retail Sales Show Robust Growth in November 2024

Declines in Personal Care and Communication

Despite the overall rise, some categories saw declines, providing minor relief for consumers. Personal care products dropped by 0.2%, while communication services and alcoholic beverages also saw slight decreases. These reductions, however, were insufficient to offset the broader inflationary pressures seen across other sectors.

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