US consumer inflation rises as households pay more for food and rents.

U.S. consumer prices rose 0.3% in December, driven mainly by a 0.4% gain in shelter costs and a 0.7% increase in food prices; core CPI excluding food and energy advanced 0.2%.

U.S. consumer prices rose in December, driven primarily by increases in shelter and food costs. The Labor Department reported the Consumer Price Index up 0.3% for the month, while measures that exclude food and energy showed more moderate gains. Policymakers were reported as watching the data closely ahead of an upcoming Federal Reserve meeting. Key facts: - The overall Consumer Price Index rose 0.3% in December. - Shelter costs, which include rents, increased 0.4% and food prices rose 0.7% month‑over‑month. - Core CPI, excluding food and energy, increased 0.2% in December. - The data reinforced expectations that the Federal Reserve would keep its policy rate in the 3.50%–3.75% range at its January 27–28 meeting. Summary: Food and housing cost increases were the main factors pushing headline inflation higher in December, while underlying inflation measures remained moderate. The report reinforced expectations that the Federal Reserve would keep interest rates unchanged at its January 27–28 meeting.