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US headline inflation edged up to 3.4 per cent for the year to December, as the Federal Reserve deliberates over when to cut interest rates from their 23-year-high.
The US consumer prices figures published on Thursday compared with an annual rate of 3.1 per cent in November. Economists had expected a rise of 3.2 per cent rather than Thursday’s reading of 3.4 per cent.
Core consumer price inflation, which excludes food and energy costs, was 3.9 per cent for the year to December, slightly lower than the 4 per cent figure for November, according to the data published by the Bureau of Labor Statistics. The month-on-month core rate was unchanged at 0.3 per cent.
US stock futures were flat and Treasury yields edged higher after the publication of the figures.
The two-year yield, which moves in line with interest rate expectations, was up 0.05 percentage points at 4.38 per cent.
Futures market traders slightly reduced expectations that the Fed would cut interest rates as soon as March.
This is a developing story