Consumer prices rose 6.5% in December as Fed mulls next rate hike

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Consumer prices rose 6.5% in December as Fed mulls next rate hike
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December inflation data could have major implications as the Fed mulls its next rate hike.

The December reading of the Consumer Price Index, a closely watched measure of the cost of everyday goods and services, showed that prices rose 6.5% compared to the same month one year earlier.

after surging to a decades-high peak of 9.1% last June. Nevertheless, Americans are still paying abnormally high prices for essentials such as groceries and rent.Additionally, inflation is still running well above the Fed’s 2% target level. Policymakers signaled more increases are likely in 2023 and that the Fed’s benchmark rate is likely to remain in restrictive territory for some time. The central bank implemented seven consecutive hikes last year.Atlanta Fed President Raphael Bostic, a non-voting member of the rate-making Federal Open Market Committee, said he would prefer raising the benchmark rate above 5%, from its current range of 4.25% to 4.50%.

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