Fed's inflation puzzle still missing a piece or two

U.S. Federal Reserve officials remain hesitant to declare victory in the fight against inflation as price increases have slowed. Data from December showed overall consumer price inflation rising, while underlying inflation fell. Producer prices dropped and retailer margins fell sharply, indicating potential price competition. However, shelter costs and prices for services like auto insurance continue to rise. The Atlanta Fed wage tracker revealed higher pay raises for workers staying in their jobs, contradicting the idea of a settling labor market. The Fed requires more evidence before committing to interest rate cuts.