US Inflation Rises Higher Than Expected, Raising Questions About Interest Rate Path

Rising housing costs contribute significantly to inflation increase, with overall prices 20% higher than four years ago.

Inflation in the US rose 0.3% in December, with an annual increase of 3.4%, higher than the expected 3.2%, raising questions about the Federal Reserve's interest rate path.
The rise in housing costs, which jumped 0.5% in December and 6.2% for the year, contributed significantly to the inflation increase.
Despite the inflation slowdown, overall prices are still almost 20% higher than they were four years ago, causing dissatisfaction among Americans.
The Federal Reserve's current interest rates, ranging from 5.25% to 5.5%, have increased borrowing costs for home and auto loans to business investments.
Analysts predict the first rate cut may occur in May, with the Fed expected to deliver 75 basis points cuts this year.