Wed, 15 Jan 2025

Egg prices surge as US inflation picks up

Overall prices in the US rose 2.9% compared with a year earlier, official figures show.

* US inflation rose 2.9% in December compared to a year earlier, up from 2.7% in November.
* Energy prices accounted for over 40% of the rise in inflation, with egg prices jumping by more than 36%.
* Core inflation (excluding food and energy) was lower than expected at 3.2% compared to 2023.
* Markets reacted positively to the news, with share prices surging and bond yields falling.
* Economists say that the data suggests the US is not yet experiencing a second wave of high inflation, relieving some anxiety in markets.
* The Federal Reserve is likely to keep interest rates unchanged at its meeting this month, but may cut rates if inflation continues to cool.
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