President Joe Biden conceded Thursday that December’s inflation report shows that the administration must do more to lower costs and cautioned that Republicans taking the White House instead would raise prices for households.
The December Consumer Price Index featured both month-to-month and year-over-year inflation clocking in above projections. Monthly inflation increased by 0.3% while yearly inflation rose by 3.4%, compared to estimates of 0.2% and 3.2% respectively. The report comes as the Federal Reserve weighs future rate increases following nearly three years of hikes.
The bulk of the increase could be attributed to rising energy and housing costs. Gas prices rose 0.2% after sliding across the fall of 2023, while housing costs accounted for roughly half of the increase in core inflation, which factors out volatile energy and food prices.
Inflation rates had gradually fallen for much of 2023,