Core inflation rate slows to 3.2% in December, less than expected
CNBCJAN 23
US Inflation Hits 2.9% as Energy Costs Drive December Increase
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Above: Shoppers in a store in San Francisco, Calif., on Jan. 6, 2025, ahead of the US Bureau of Labor Statistics consumer price index (CPI) report on Jan.15. Image copyright: David Paul Morris/Contributor/Bloomberg via Getty Images
The Spin
Republican narrative
Another uptick in inflation should come as no surprise given the array of Democrat policies still plaguing the country. From collapsing the energy sector to printing massive amounts of money, Biden has left Americans under the weight of his unnecessary fiscal irresponsibility. Once in office, Trump must be careful when dealing with bureaucrats left over from the Biden administration, most notably in the Fed.
Democratic narrative
Despite Donald Trump's bombastic accusations ahead of his inauguration, the US economy is in a remarkably strong position. To the envy of many other developed countries, Biden brought America back to almost full employment while simultaneously cutting inflation down to the Fed's desired rate. Trump is about to waste all of this progress through his proposed tariffs, mass deportations, and trade wars.
Metaculus Prediction
There is a 20% chance that the IMF will declare a global recession before 2026, according to the Metaculus prediction community.
