In the latest sign of a rebound in economic activities following rollout of a mass-scale pandemic vaccination campaign that is expected to inoculate as many as 100 million Americans by end-March, US Labour Department had issued a statement earlier on Wednesday saying that its Consumer Prices Index, which measures an average change of price paid off by the consumers for a gauge of consumer goods and services, had reported a robust rise in December, bolstering views that the economy could regain much of its strength, lost in the meadows of a global-scale public health concern, as early by Spring this year.
Nonetheless, Labour Department data had also underscored that a sharp uplift in gasoline prices had been a topline reason behind last month’s robust upsurge in Consumer Prices Index, while inflation indicators had remained tepid amid a pandemic-ravaged US economy, labour market alongside a vast services sector of which have still been reeling from the scars of the pandemic’s fiscal consequences.
Several analysts, however, were quoted saying followed by the reveal of Labour Department data that US inflation could witness a sweeping uprising over the coming months citing a remark from the President-elect Joe Biden who had said earlier this month that the next fiscal stimulus package would include trillions of dollars in fresh monetary aids.
US Consumer Prices Index posts solid rise in December
In tandem, according to US Labour Department, US Consumer Prices Index increased 0.4 per cent in December that comes over the heels of a 0.2 per cent rise in November last year, while food prices had sharply clawed back alongside an 8.4 per cent climb in gasoline prices that accounted for roughly 60 per cent of increase in December Consumer Prices Index.
On an annualized basis, US Consumer Prices Index ascended 1.4 per cent last month compared to the same time a year earlier, though annual inflation rate had been below a 10-year average of 1.7 per cent, solidifying a US Fed’s stance to keep its benchmark borrowing cost near-zero at least until end-2023.