CPI Data Set to Show Steady US Inflation in December, Still Above the Fed’s Target
🔥 Key Takeaways
Inflation Expectations
The US Bureau of Labor Statistics (BLS) is set to release December’s Consumer Price Index (CPI) report on Tuesday at 13:30 GMT. The report is expected to show that prices remained broadly stable in the last month of 2025, indicating steady US inflation. This is a crucial read on inflation and could stir some short-term moves in the US Dollar.
Fed’s Target Still Elusive
Despite the expected stability in inflation, the rate is still above the Federal Reserve’s target. The Fed has been working to bring inflation down to its target rate, but the latest data suggests that there is still work to be done. This could have implications for monetary policy in the coming months.
Implications for the US Dollar
The CPI report has the potential to impact the US Dollar in the short term. If the report shows that inflation is indeed stable, it could lead to a slight appreciation in the US Dollar. However, if the report surprises with higher-than-expected inflation, it could lead to a depreciation in the US Dollar.
Conclusion
The December CPI report is set to provide valuable insights into the state of US inflation. With expectations of steady inflation, the report could have significant implications for the US Dollar in the short term. Traders and investors will be watching the report closely to gauge the potential impact on monetary policy and the US economy.
Read Also Epochs
