The United States consumer price index (CPI) rose 6.5 percent over the year ending in December, according to the US Department of Labor’s press service. The figure confirms a continuing slowdown in inflation from earlier peaks, with a trend toward gradual price stability across broad sectors.
Annual inflation in the United States has eased since its peak, moving from 7.7 percent in October to 7.1 percent in November. It had reached a high of 8.5 percent in March, the strongest reading since 1981. This pattern shows inflation cooling over the course of the year, though the pace remains above the central bank’s target at times.
On a month‑to‑month basis, consumer prices dipped 0.1 percent in December after a 0.1 percent increase in November, signaling some relief in price pressures at the end of the year.
The Federal Reserve System, the central bank of the United States, revised its inflation forecast in mid December, lifting the projected long‑term rate from 2.8 percent to 3.1 percent. The update reflects evolving conditions in the labor market, energy costs, and supply chain dynamics as policymakers calibrate rate paths to price stability.
In a recent global assessment, Gita Gopinath, the IMF’s first deputy managing director, noted that inflation in the American economy remains elevated. She emphasized that attempting to anchor expectations and regain steady growth will require continued attention to household purchasing power, wage dynamics, and policy credibility in the months ahead.
Meanwhile, European observers have weighed in on US policy. Belgian Prime Minister Alexander De Croo criticized what he described as aggressive use of fiscal incentives under the Inflation Reduction Act, highlighting how cross‑border considerations influence discussions on energy subsidies, investment incentives, and tax policies in a connected global economy.