Benign US inflation keeps the door open for at least two further rate cuts

From think.ing.com

The December CPI report has provided another soft inflation print, with headline prices rising 0.3% month-on-month as the consensus forecast, while core inflation rose only 0.2% versus the 0.3% consensus prediction. We thought there was a strong chance of an even higher print of 0.4%, in large part due to timing issues related to the government shutdown that heightened the influence of price discounting later in November 2025 relative to a 'normal' November 2024. We thought this would have led to a bigger seasonally adjusted bounce for December price levels. The key takeaway is that goods prices were very benign, ... (full story)