TechFlow reported on December 20 that the Federal Reserve's preferred inflation measure was mild in November, a step in the right direction for policymakers to seek further rate cuts in 2025. The data should help ease Fed officials' concerns about the inflation outlook.

Fed officials released updated forecasts this week showing higher prices and interest rates in 2025. The new forecasts triggered a sell-off in U.S. stocks as investors have digested expectations of tighter policy. Details on prices show a broad slowdown in inflation.

Core service prices (a closely watched category that excludes housing and energy) rose 0.2% month-on-month, the lowest level since August. Core commodity prices (excluding food and energy) fell for the first time in three months. (Jinshi)