Categories: Business

Housing prices continue to rise sharply

In December, US inflation rose more than expected. Photo: Getty Images. (Andrey Onufrienko via Getty Images)

US consumer prices rose more than expected in December as investors continue to look for signs that the Federal Reserve will start cutting interest rates in the new year of 2024.

The Consumer Price Index (CPI) in December showed a slight increase of 0.3% compared to November. an increase of 3.4% compared to the same month of the previous yearwhich is higher than the 3.1% observed in November.

Economists had expected inflation to rise 0.2% month-on-month and 3.2% year-on-year, according to Bloomberg.

If the most volatile categories of food and energy are removed, inflation known as “core” or “core” inflation will occur.basicIn England, prices recorded an inter-annual pace of 3.9%, representing a slight decline from 4.0% in November. Economists surveyed by Bloomberg expected core inflation to be 3.8%. In monthly terms, this inflation increased by 0.3%, the same as in November.

The rise in housing prices cannot be stopped

A price report released today by the US Department of Employment highlights housing index, which rose 6.2% year on year, which contributed to more than half the increase in the overall consumer price index in December. On a monthly basis, the index increased 0.4%, remaining stable compared to the change observed in November.

Rental prices also remained high. The rent index and rent equivalent index for landlords increased by 0.5% month-on-month for the third month in a row. The rent equivalent for landlords is the hypothetical rent a landlord would pay for the same house.

Other products that rose strongly in December were car insurance, with an increase of 20.3% compared to the previous year and 1.6% compared to November.

Monthly used car prices, which have fallen in recent months, were down 1.3% year on year.

Food prices increased by 2.7% in December compared to the previous year, with prices rising 0.1% from November to December. The food at home index fell 0.1% after rising over the past few months.

Egg prices rose 8.9% month-on-month after rising 2.2% in November.