Inflation cooled for the sixth straight month in December. The Consumer Price Index (CPI) rose 6.5% year-over-year, down from 7.1% in November and significantly below a 9.1% peak in June last year.
Consistent easing of inflation could allow the Federal Reserve to slow down the pace of interest rate hikes even further next month. Patrick Harker of the Philadelphia Fed believes that 25-basis-points hikes would be appropriate going forward.
