Latest economic data were published last week, indicating that the U.S. economy remains on solid footing. Gold prices held up relatively well – but can it last?
Recent U.S. Economic Data Show General Health
Last week was full of economic reports. Let’s analyze them. First, the CPI rose 0.2 percent in December, slightly below expectations and the 0.3-percent increase in November. But as the chart below shows, the CPI (and the core CPI as well) rose 2.3 percent over the whole 2019, which was the largest advance since the 3.0-percent rise in 2011. Yet inflation is still quite low by historical standards.
Chart 1: Annual percentage change in the US CPI (green line) and the core CPI (red line) from January 2015 to December 2019.