The recently released December CPI data in the US has reignited market discussions. The month-over-month increase was 0.3%, with the annual rate remaining stable at 2.7%, essentially unchanged for two consecutive months, directly dashing market expectations of rate cuts. Although core CPI rose only 0.2% month-over-month, slightly below expectations, the overall situation remains not very optimistic.

This wave of inflation rebound is mainly driven by two factors. First is the continued rise in housing costs — the housing index increased by 0.4% month-over-month, with owner’s equivalent rent and actual rent both up 0.3%, and short-term accommodation soaring by 2.9%. Entertainment spending also showed strength, surging 1.2% in a single month, marking the largest increase since 1993. Prices for airline tickets, medical care, clothing, and personal care all rose across the board, exerting considerable pressure.

Food shows an interesting divergence. The overall food index increased by 0.7%, with both at-home and dining-out prices rising by 0.7%. Dairy products became 0.9% more expensive, but the egg index plummeted 8.2%, while meat, poultry, fish, and eggs overall fell by 0.2%. This indicates that food price fluctuations still have structural characteristics.

Energy was relatively stable. The index rose by 0.3% overall, with natural gas up 4.4%, but gasoline fell by 0.5% (not seasonally adjusted, it declined by 5.3%), and electricity dipped slightly by 0.1%. Looking at a longer timeframe, electricity increased by 6.7%, natural gas by 10.8%, but gasoline is still down 3.4%.

Excluding food and energy, core inflation appears more stubborn. The 12-month increase reached 2.6%, with categories like medical care, personal care, and household goods all rising over 3%. However, the communication index was a bright spot, plunging 1.9%, and the used car market is also cooling down, decreasing by 1.1% month-over-month.

Additionally, note that CPI-W rose to 2.6%, while C-CPI-U is at 2.5%, reflecting differences in data calculation methods. The next CPI release will be on the evening of February 11 at 21:30, and markets are watching whether it can break this high-stickiness dilemma. For the crypto market, the direction of inflation data directly impacts macro expectations, and these details are worth continuous monitoring.