In December, the U.S. saw a notable uptick in inflation, with the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred measure, rising to 2.6% from 2.4% a year earlier. This increase was in line with economic forecasts. On a monthly basis, the PCE index climbed by 0.3%, matching expectations.

Simultaneously, U.S. labor costs increased by 0.9% in the fourth quarter of 2024, aligning with economists' predictions.

Federal Reserve Governor Michelle Bowman highlighted "upward risks" to inflation, noting that progress in reducing inflation has significantly slowed compared to the previous year. She advocates for a cautious and gradual approach in monetary policy adjustments.