Easing core inflation may reinforce Fed optimism

A customer shops at a store in San Francisco, California. — AFP

UNDERLYING US price pressures probably continued to recede as 2023 drew to a close, backing up optimism at the Federal Reserve (Fed) about the path for inflation.

The consumer price index (CPI) excluding food and fuel, a measure favoured by economists as a better indicator of underlying inflation, is seen increasing 3.8% in December from a year earlier.