US inflation will rise more than expected in December. Israel is powerless against this Hezbollah strategy

US price inflation unexpectedly accelerated significantly in December. This dampened expectations of an upcoming cut in key US interest rates.

In December, consumer prices rose 3.4 percent compared to the same month last year, the US Department of Labor announced on Thursday. Economists had expected an average of 3.2 percent. In November the interest rate was 3.1 percent.

Inflation is driven year after year by higher food and rent prices. The increase in housing costs contributed more than half of the monthly increase in the general index in December.

Lower core inflation

Core inflation fell to 3.9 percent from 4.0 percent in the previous month. Economists had expected a decline to 3.8 percent. The core interest rate receives special attention from the US Federal Reserve. According to experts, it reflects general price developments better than the overall tariff, because components that are sensitive to fluctuations such as energy and food are excluded.

The data on price developments are important for the monetary policy of the US Federal Reserve, which has not raised its key interest rates further recently. Experts expect interest rate cuts this year. However, there is still considerable uncertainty about the timing and pace of interest rate cuts. (sda/awp/dpa)