U.S. Inflation Shows Moderate Increase in Late 2023, Influencing Fed Policy Outlook

U.S. inflation data for late 2023 shows a modest rise in wholesale and consumer prices. November's Producer Price Index increased 0.2%, driven mainly by higher energy costs, while core producer prices remained subdued. December's Consumer Price Index rose 0.3%, maintaining a year-on-year rate of 2.7%. These figures suggest inflation is stabilizing but still above the Federal Reserve's target, supporting expectations of a cautious approach to interest rates amid lingering economic uncertainties.