Falling consumer prices indicate declining US inflation
Business
Gasoline, auto prices decreased for first time in more than 2-1/2 years in December
WASHINGTON (Reuters) - Gasoline and auto prices decreased for the first time in more than 2-1/2 years in December giving confidence that inflation was finally on a sustainable downward trend even if the job market remained still tight.
With food prices registering their smallest monthly gain since March 2021 Americans also saw greater relief at the grocery store last month. However utilities continued to rise in cost and rent remained extremely exorbitant.
The Federal Reserve may be able to slow down the rate of interest rate rises even further next month due to declining inflation.
A second analysis of the labor market revealed that weekly first requests for unemployment insurance came in at 205,000 below the 215,000 estimates.
Equities on Wall Street fluctuated after the data, with the S&P 500 dipping at 0.8 percent before rising again.
S&P 500 gained 13.56 points, Nasdaq Composite increased 69.43 points, Dow Jones Industrial Average increased 216.96 points, the global MSCI stock market index climbed 0.80 percent, pan-European STOXX 600 index increased 0.63 percent to close at its highest level since April 29.
The dollar index dropped to 102.07, its lowest level since early June, before marginally reversing course. It was last down 0.873 percent, while the euro increased by 0.89 percent to $1.0851.
At 129.18 per dollar, the Japanese yen gained 2.56 percent against the US dollar, and the British pound was last up 0.60 percent on the day at $1.2215.
US crude ended the day up 1.27 percent at $78.39 a barrel while Brent ended the day up 1.65 percent at $84.00.
