Good news for the Fed: Revised inflation data confirms last year’s progress
New York (CNN) — Last year, the Federal Reserve was caught off guard when the Bureau of Labor Statistics released revised Consumer Price Index figures showing inflation rose in December 2022 and did not fall as previously thought.
Posted — UpdatedThat left Fed officials bracing for the latest batch of revised CPI data, released Friday morning, which some feared could take away the inflation progress they observed last year.
That wasn’t the case though. Instead, officials got some good news: December’s monthly inflation wasn’t as bad as initially reported, according to newly revised figures from the BLS.
The new adjustments indicate prices increased by 0.2% in December from the prior month, compared to the initial estimate of 0.3%.
And for other months last year, initial data was either unchanged or revised by no more than one-tenth of a percentage point up or down.
The adjustments take into account recalculations of seasonal adjustment factors. However, this doesn’t impact the annual inflation rate the BLS reported, which remains at 3.4%. That’s a significant improvement from the end of 2022, when prices were increasing by 6.5% on an annualized basis.
This story is developing and will be updated.
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