US CPI YoY for December 2.9% versus 2.9% estimate. MoM 0.4% versus 0.3% estimate

• Prior month 0.3%
• CPI MoM 0.4% versus 0.3% estimate
• CPI YoY 2.9% vs 2.9% estimate
• CPI Core 0.2% vs 0.2% estimate. up 0.225% unrounded.
• CPI COre YoY 3.2% vs 3.3% estimate.
• Real weekly earnings -0.1% versus 0.1% last month (revised from 0.3%)

Summarized from the BLS:

• CPI Increase (Monthly): CPI-U rose 0.4% in December, up from 0.3% in November (seasonally adjusted).
• CPI Increase (Annual): All items index rose 2.9% over the last 12 months (unadjusted).
• Energy Index: Increased 2.6% in December, contributing over 40% of the monthly CPI rise; gasoline rose 4.4%.
• Food Index: Increased 0.3% in December, with food at home and food away from home both rising 0.3%.
• Core CPI (Excluding Food & Energy): Rose 0.2% in December, following four months of 0.3% increases.
• Index Increases (December): Shelter, airline fares, used cars and trucks, new vehicles, motor vehicle insurance, and medical care.
• Index Decreases (December): Personal care, communication, and alcoholic beverages.
• 12-Month Trends:
  • Core CPI rose 3.2%.
  • Energy index decreased 0.5%.
  • Food index increased 2.5%.

38 Basis points of cuts is expected by end of the year up from around 32 basis points ahead of the report

The first cut is expected in July from September

The reactions:

• Nasdaq up 360 points
• S&P up 85.84 points
• Dow up 584 points

USD is lower

Yields are lower:

• 2 year 4.280%, -8.4 basis points
• 10 year 4.693%, -9.4 basis points
• 30 year 4.912%, -7.3 basis points

This article was written by Greg Michalowski at www.forexlive.com.