Inflation Edged Up in December After Rapid Cooling Most of 2023

Americans caught a big break last year as inflation fell by nearly half and paychecks grew, delivering real wage gains in 2023 for the first time in three years. 

Inflation’s cool down from historic highs keeps the Federal Reserve on track to hold rates steady later this month and contemplate cutting them later this year. But consumers aren’t in the clear yet; December’s data showed stubborn lingering pressures that suggest inflation isn’t fully beaten.