This morning, the government released the CPI data for December. Last month, consumer prices rose by 0.1%. Actually, working out the decimals, the CPI was up 0.1498. In the last year, inflation was up 2.12%.
The core rate rose by 0.3%. That’s the biggest monthly increase since January 2017. For the year, core prices were up 1.77%.
Here’s an updated look at the real Fed funds rate based off core inflation: