December 2024 saw inflation rise due to higher food and energy prices, but experts predict a downward trend in 2025.

Lawndale: So, inflation took a little bump in December 2024. The consumer price index, or CPI, went up by 2.9% compared to last year. That’s a bit higher than the 2.7% we saw in November. It’s a reminder that prices are still on the rise, especially for food and energy.
But don’t lose hope just yet! Economists think inflation might start to drop again in 2025. They’re keeping an eye on what the new President, Donald Trump, might do. His policies could shake things up, especially if he pushes for tariffs or tax cuts.
The CPI tracks how prices change for everyday stuff, like groceries and gas. It’s good to know that inflation has come down from its peak of 9.1% back in June 2022. Still, it’s above the Federal Reserve’s goal of 2%.
Now, let’s talk about groceries. Prices went up by 0.3% from November to December. Eggs were a big part of that increase, jumping 3.2% in just a month. That’s because of bird flu affecting chicken supplies. Overall, egg prices are up 37% since last December!
Gas prices also saw a rise of 4.4%, but at the pump, they actually dropped a bit. It’s a bit confusing, but the way they calculate inflation can make it look like prices are higher than they really are.
On a brighter note, housing inflation is slowing down. The annual rate for housing was 4.6%, the lowest since January 2022. That’s a good sign since housing costs play a big role in overall inflation.
Core CPI, which excludes food and energy, also showed some improvement, dropping to 0.2% monthly. This means the underlying inflation trends are looking better.
Wage growth is cooling off too, which is important because it affects how much businesses charge for services. If wages go up too fast, prices might follow.
In other news, airline fares and car prices are on the rise. Some folks are rushing to buy cars before potential tariffs kick in, which is driving demand up. It’s all a bit of a balancing act, but it’s clear that inflation is still a hot topic as we move into 2025.