- US inflation jumps 2.9% compared to the same period in 2023
- Energy prices contributed to over 40% of the overall inflation surge
- Egg prices soared more than 36% from 2023 levels
US inflation rises driven by energy and food costs
The United States saw a notable rise in inflation last month, driven by spikes in energy and food costs. According to the Labor Department, prices in December increased by 2.9% compared to the same period a year earlier, up from 2.7% in November.
Energy prices played a major role, contributing to over 40% of the overall inflation surge. Egg prices were particularly affected, soaring more than 36% from 2023 levels. This sharp increase stemmed from a bird flu outbreak that disrupted supply chains and caused shortages.
Despite these jumps in specific areas, prices for many other goods rose less than anticipated. This helped ease concerns that the Federal Reserve might need to take drastic measures to control inflation.
Core inflation, which excludes the volatile food and energy sectors, rose by 3.2% year-over-year in December and just 0.2% from November. These figures came in below analysts’ expectations and are considered a more reliable indicator of long-term trends.
The market responded positively to the news. Share prices climbed, and bond yields—reflecting interest rates on US government debt—dropped during early trading on Wednesday in New York, signalling relief among investors.