Inflation news: BLS revises CPI figure for December

S&P 500 opened in the green this morning after the U.S. Bureau of Labour Statistics positively revised its inflation figure for December.

Here's the revised inflation number for December

Consumer price index was actually up 0.2% only for the month in December – less than the previously reported 0.3%.

The labour department did confirm, however, that the revision applied only to the headline number. Core CPI (excluding food and energy), it reiterated, stood at 0.3% in the final month of 2023.

Still, what the government’s update emphasizes is that inflation continued to moderate in December – which creates more room for the U.S. Federal Reserve to cut rates this year.  

Note that the benchmark S&P 500 index surpassed the closely watched 5,000 level on this inflation news on Friday.

Here's what it may mean for the S&P 500 index

Many believe the U.S. stocks will push further to the upside once the central bank confirms that it’s now ready to start lowering interest rates.

In fact, Binky Chadha of Deutsche Bank expects the benchmark S&P 500 index to end this year at 5,500 level which suggests another 10% upside from here. Speaking recently with CNBC, he said:

His view is in sharp contrast with Cole Smead who recently warned the U.S. equities are in a very dangerous spot (find out more).