US consumer inflation pressures may have eased further in December

By PAUL WISEMAN
AP Economics Writer

WASHINGTON (AP) — The government is expected to report that underlying inflationary pressures eased further in December. Excluding volatile food and energy costs, “core” prices likely rose 0.2% from November, according to a survey of forecasters, down from a 0.3% rise the previous month. And compared with 12 months earlier, core prices are thought to have risen 3.8%, down from a 4% year-over-year increase in November. Economists pay particular attention to core prices because they are thought to be a better guide to the likely path of inflation. Hope is growing that the Federal Reserve can achieve a rare “soft landing” by cooling the economy just enough to tame inflation without causing a recession.