Inflation Gains Steam In December – NMP Skip to main content

Inflation Gains Steam In December

Jan 11, 2024
housing inflation
News Director

Core CPI rises by 0.3%, signaling ongoing inflationary pressures with energy and shelter costs driving the uptick.

The latest report from the Labor Department reveals that inflation pressures are on the rise again, with the Consumer Price Index (CPI) registering a 0.3% increase in December. This marks a 3.4% year-over-year increase, compared to the 3.1% reported in November.

Core CPI, which excludes energy and food costs, also rose by 0.3% in December, matching the previous month's figure. Over the year, it increased by 3.9%, down slightly from November's 4%.

The increase in inflation comes as energy and shelter prices saw a significant uptick, contributing to the overall rise in CPI. The energy index increased by 0.4% in December, with electricity and gasoline prices offsetting a decrease in natural gas prices. The shelter index continued its upward trend at 0.4%, accounting for over half of the monthly all-items increase.

First American Economist Ksenia Potapov said shelter inflation lags observed prices by approximately six-to-12 months, "so rent declines on new leases are slow to show up in the inflation index. However, those rent declines will increasingly drag down overall inflation throughout 2024.”

But it's nothing to worry about. 
 
She said zooming out on monthly fluctuations “inflation is continuing to moderate and that we are on the right track, so there's not much for the Federal Reserve to do other than wait patiently.”

Additionally, the food index saw a 0.2% increase in December, following a similar uptick in November. The index for food at home rose by 0.1% over the month, while the index for food away from home increased by 0.3%.

Despite these developments, with inflation approaching the target range, the composition of inflation is expected to be of lesser concern to Federal Reserve participants.

The report also highlighted notable changes in various categories, including a 1.5% increase in motor vehicle insurance, a 0.5% rise in used cars and trucks prices, and a 0.6% increase in medical care costs.

The overall CPI's 3.4% rise over the past 12 months indicates an increase in the cost of living for many Americans, driven in part by rising shelter and energy expenses.

About the author
Christine Stuart is the news director at NMP.
Published
Jan 11, 2024
Investor Home Purchases Hold Steady Despite Housing Market Slowdown

Realtor.com report finds investors accounted for 11.3% of home purchases in 2025, as small investors gained market share and institutional buyers continued to retreat

Jun 23, 2026
Seller Concessions Hit Record Spring High, Giving Buyers More Leverage

Nearly half of home sales included seller concessions in May, creating new opportunities for borrowers to reduce upfront costs and negotiate better terms

Jun 23, 2026
Housing Supply May Matter More Than Rates: JPMorgan

New report argues factory-built housing could lower construction costs, expand affordable inventory, and create more opportunities for first-time homebuyers

Jun 23, 2026
Best And Worst Markets For Single-Parent Homeownership

LendingTree finds single parents in some metros are more than twice as likely to own a home as those in the nation's least affordable markets

Jun 22, 2026
One-Third Of Homeowners Expect To Refinance Despite Elevated Mortgage Rates

Many prospective refinancers carry mortgage rates above 5%, suggesting demand could accelerate if borrowing costs decline

Jun 19, 2026
FHA Continues To Drive New-Home Purchase Activity

Government-backed loans accounted for more than half of builder applications for a fifth straight month as loan sizes fell and buyers remained rate-sensitive

Jun 19, 2026