US inflation held steady in December, new data showed Tuesday, suggesting the country has largely avoided a runaway surge in consumer prices.
Although inflation remains above the Federal Reserve’s 2% target, the new reading suggests the impact of tariffs on prices has abated since the fall.
President Donald Trump used the report to urge the Fed to lower the cost of borrowing, though traders expect the central bank to hold interest rates steady this month.
Trump is set to speak about the economy Tuesday afternoon as his administration ramps up its affordability messaging.
It remains to be seen whether the cooler inflation reading will be enough to assuage Americans’ cost-of-living concerns: Prices for daily necessities like food were particularly elevated in December.