While the overall pace of core U.S. inflation in December 2021 remained strong, underlying details in the Consumer Price Index (CPI) data suggested some stabilization from the recent reacceleration. This reinforces PIMCO’s outlook for U.S. inflation to begin to moderate, likely peaking in February and then trending back toward the central bank’s target throughout 2022. The unusual holiday shopping season and recovering travel drove strong price gains in December, while shelter price inflation appears to be stabilizing at an elevated level. Core CPI rose 0.55% month-over-month (m/m) in December, which brought core CPI ... (full story)