December inflation data released, overall more optimistic than expected, but only "slightly optimistic." Nominal annual inflation rate of 2.7% and monthly rate of 0.3% both meet expectations, remaining unchanged and sticky; core annual inflation rate of 2.6% and monthly rate of 0.2% are below expectations, with inflation easing after excluding food and energy.

This data indicates that inflationary pressures mainly stem from energy and food, while other areas are more optimistic. The optimistic trend is reflected in both goods and services sectors. However, the Bureau of Labor Statistics website is inaccessible, so specific data cannot be viewed.

December data has little impact on subsequent interest rate decisions, primarily providing buffer space for Q1. The market is currently defining inflation expectations based on energy prices in Q1. The outlook has naturally shifted to optimism, but this optimism is cautious, and its sustainability is uncertain. Q1 faces many issues, such as the impact of tariffs on commodity inflation and the extent to which re-pricing in the service sector affects service inflation, which are key concerns.

Tonight's inflation data is lukewarm; how the financial markets interpret it and how long this interpretation can last remains to be seen! If you find the analysis useful, please follow, bookmark, like, and share your thoughts in the comments!