09:07 AM EST, 01/15/2025 (MT Newswires) -- "Jay Powell got a late Christmas present in the December inflation report," CIBC's Ali Jaffery said Wednesday.

Core CPI prices rose 0.23% month-over-month, a bit below consensus expectations of 0.3%, said Jaffery. Three month annualized core CPI came down four ticks to 3.3%. But headline inflation increased by 0.4% in the month, matching forecasters' predictions. In year-over-year terms, headline rose by two ticks to 2.9%, while core edged down a tick to 3.2%.

According to Jaffery, the improvement in core was mainly due to softer core goods prices in the month as used car prices cooled a bit after a few hot months. He noted service inflation, including shelter costs, was steady in the month. And he said: "Today's report, while very much welcomed, doesn't change the game plan for the Fed. The labor market and growth remain on solid footing, so they can comfortably wait for continued inflation progress and more insight into the future directions of fiscal and trade policy. Expect that message from Powell later this month."