This disparity impacts everyday Americans who now find their paychecks do not stretch as far as they once did. The Consumer Price Index (CPI) rose by 2.9 percent in December 2024 compared to December 2023.

Progress on inflation should stall this year” as fiscal, immigration and trade policies shift, caution Bank of America economists.

Entering 2025, models from forecasting companies like Trading Economics anticipate inflation rates between 2.4% and 2.9% between the end of 2024 and the start of 2026. Unfortunately, actually predicting inflation can be difficult, as rates can be affected by a variety of factors, including political climates and supply-chain interruptions.

Economists like me rely on data from federal data collection agencies like the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA). They provide critical data on

Inflation picked up in late 2024, fueled by an increase in gas prices, the latest sign of stalled improvement on lowering prices as President-elect Donald Trump prepares to take office. The consumer price index increased by 2.

The Consumer Price Index rose 2.9 percent from a year earlier, but a measure of underlying inflation was more encouraging.

And all this productivity is why wage growth keeps beating inflation, said Betsey Stevenson, a professor of economics at the University of Michigan. “Real wage growth has to come from productivity growth. Because we’re doing more with less, we get more in the end,” she said.

Healthy employment conditions and wage growth continue to outpace inflation, but that’s not creating any additional inflationary pressures. The Bureau of Labor Statistics reported Wednesday that the index for services (less energy services) rose 0.

The better-than-expected data sent the blue-chip Dow Jones Industrial Average surging more than 700 points, or 1.7%, as investors felt renewed confidence that the Fed will cut rates multiple times this year. In recent trading, fed-fund futures showed the chances of more than one cut rising to 46%, from 35% on Tuesday, according to CME Group data.

There are growing concerns about the stickiness of inflation and fears that the Federal Reserve may have to keep interest rates restrictively high for longer.

Buying produce in season is another great way to save money. Seasonal fruits and vegetables are often priced lower due to their abundance. For instance, berries are more affordable in the summer, while root vegetables like sweet potatoes and squash tend to be less expensive in the fall.

Newly released federal inflation data shows that prices rose last month. The U.S. Bureau of Labor Statistics on Wednesday released its Consumer Price Index, a key marker of inflation, which jumped 0.4% in December,