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Inflation Rises 2.6% as Fed Pauses Rate Cuts

1/31/2025

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Summary

Story summary

In December 2024, the Personal Consumption Expenditures price index surged by 2.6% year-over-year, largely fueled by rising energy costs. Core inflation held firm at 2.8%. Meanwhile, consumer spending climbed 0.7% and personal income edged up by 0.4%. The Federal Reserve decided to pause interest rate cuts, grappling with stubborn inflation that remains above their 2% target.

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Story summary

In December 2024, the Personal Consumption Expenditures price index surged by 2.6% year-over-year, largely fueled by rising energy costs. Core inflation held firm at 2.8%. Meanwhile, consumer spending climbed 0.7% and personal income edged up by 0.4%. The Federal Reserve decided to pause interest rate cuts, grappling with stubborn inflation that remains above their 2% target.