The strong start to 2023 continued as year-over-year inflation fell for the sixth straight month.
Inflation, measured by the consumer price index (CPI), fell to 6.5% in December from 7.1% in November, marking its sixth straight monthly decline. Additionally, the month-over-month CPI (-0.1%) reading fell for the first time since June 2020. Core CPI rose 0.3% in December compared to 0.2% in November while the year-over-year core CPI fell to 5.7% from 6.0% in November.
Investors continue to hope that the softening inflation readings will provide the Federal Reserve with more evidence that further slowing of its interest rate hikes is warranted.