Inflation firmed up at year’s end, after the pace of price gains fell by nearly half in 2023.

The consumer-price index climbed 0.3% in December from the prior month and increased 3.4% from a year earlier, the Labor Department said Thursday. That compares with November’s 0.1% monthly gain and marks an acceleration from that month’s 3.1% annual increase.

Core prices, which strip out volatile food and energy items, rose 0.3% in December from the prior month—the same monthly increase as November and slightly faster than would be consistent with the Federal Reserve’s long-term inflation target of 2%. Core prices increased 3.9% from a year earlier, a modest slowing from November’s 4% annual increase.

Overall inflation is well down from 6.5% at the end of 2022, meaning consumers see their dollars go further, though pockets of fast-rising prices remain, such as those for auto insurance and repairs. The rapid cooling of core price increases over the past year has raised hopes of a soft landing, where inflation can be tamed without a surge in unemployment or a recession. Core inflation is often viewed as a better predictor of inflation’s future path than the overall numbers.... Read More: WSJ