CPI for December 2023 - 3.4%
CPI for December 2023 - 3.4%
The Consumer Price Index (CPI) rose 3.4% on a year-over-year basis in December, following a 3.1% increase in November. On a seasonally adjusted monthly basis, the CPI rose 0.3% in December.
I wonder if this has to do with the shipping disruption via the Red Sea. I am certain this opportunity in general won't be missed by corporate leaderships as a guise to raise prices, but I'm not sure whether we're already seeing that or whether it's something else.
I bet there's a way of checking since it was very feasible to account for the economic disruption caused by the ship getting wedged in the Suez Canal a few years ago.
It's almost entirely driven by the services sector, in particular rent. Goods prices had been deflationary for the better part of the fall, but near the end of the year their prices flattened.
The Red Sea issues haven't really started hitting prices yet, but I think they will start hitting goods and energy pricesin the coming months. I personally think we could likely see inflation starting to increase again unless service inflation comes in