The December CPI report delivered an unexpected result, with a notable uptick primarily driven by escalating service costs. This development presents a dilemma for the Federal Reserve as it contemplates a reduction in interest rates later this year. With this dynamic in play, a question emerges: When will consumer inflation revert to trends observed before the global pandemic? Kathy Bostjancic, Chief Economist at Nationwide, and Senior Economist Ben Ayers delve into the intricacies of the December CPI report and shed light on our inflation forecast for the upcoming year.
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