The Consumer Price Index increased 0.4% on a seasonally adjusted basis in December, after rising 0.3% in November, the U.S. Bureau of Labor Statistics reported Wednesday.

"Headline inflation rose due to volatile energy prices, while core inflation eased. Although less concerning than November's report, underlying pressures persist, with elevated service prices and rising commodity prices after months of decline,” said Dawit Kebede, America's Credit Unions Senior Economist. “This supports the Federal Reserve's decision to hold rates steady, given the solid economy, strong labor market, and inflation remaining above target. Credit unions can expect improved loan growth in 2025, with a lower fed funds rate, albeit with fewer cuts than anticipated.”