Inflation slowed further in December as an economic ‘soft landing’ moves into sharper focus

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — The Federal Reserve’s preferred inflation gauge cooled further even as the economy kept growing briskly, a trend sure to be welcomed at the White House as President Joe Biden seeks re-election in a race that could pivot on his economic stewardship. Prices rose just 0.2% from November to December, a pace consistent with pre-pandemic levels and barely above the Fed’s 2% annual target. Excluding volatile food and energy costs, “core” prices rose just 0.2% from month to month and 2.9% from a year earlier — the smallest such rise since March 2021. The latest data suggests that the economy is achieving an elusive“ soft landing,” in which inflation falls back to the Fed’s target without a recession.