The trend in the U.S. Consumer Price Index (CPI) shows some recent moderation but remains elevated compared to historical norms. Here's a breakdown:

Recent data:

December 2023: The CPI increased 0.3% month-over-month and 3.4% year-over-year (seasonally adjusted). This is down from a peak of 0.8% and 9.1% in June 2022, respectively.

Food and energy: These categories continue to drive Inflation, with food prices rising 0.0% and energy prices increasing 0.4% in December. However, the rate of increase for both categories has slowed in recent months.

Core CPI: This measure excludes volatile food and energy prices and rose 0.3% in December, bringing the year-over-year increase to 3.9%.

Overall trend:

While the pace of inflation has slowed in recent months, it remains above the Federal Reserve's target of 2%.

Some economists believe inflation will continue to moderate as supply chain disruptions ease and energy prices stabilize.

However, other factors, such as labor market tightness and geopolitical tensions, could keep inflation elevated.

Looking ahead:

The Federal Reserve is closely monitoring inflation and may raise interest rates further to cool the economy and bring inflation down.

The future trajectory of inflation depends on various factors, making it difficult to predict with certainty.

Our Prediction on XAUUSD Today, 13th February 2024.