US headline inflation edges up more than expected in December

US headline inflation edged up in the year to December, as the Federal Reserve deliberates over when to cut interest rates from their 23-year-high.

Consumer prices rose by 3.4 per cent, according to figures published by the Bureau of Labor Statistics on Thursday, compared with an annual rate of 3.1 per cent in November. Economists polled by LSEG had predicted a 3.2 per cent annualised rate.

So-called core consumer price inflation, which strips out volatile food and energy costs, was 3.9 per cent in the 12 months to December, moderating slightly from 4 per cent in November. Economists had expected an annualised core rate of 3.8 per cent.

The monthly core rate was 0.3 per cent.