The US Bureau of Labor Statistics reported on Thursday that inflation in the US, as measured by the Consumer Price Index (CPI), declined to 6.5% on a yearly basis in December from 7.1% in November.  This reading came in line with the market expectation. On a monthly basis, the CPI declined by 0.1% following November's increase of 0.1%.

Further details of the publication revealed that the Core CPI, which excludes volatile food and energy prices, edged lower to 5.7% on a yearly basis from 6% as expected. Finally, Core CPI rose by 0.3% on a monthly basis.

Follow our live coverage of the market reaction to US inflation data.

Market reaction

The US Dollar Index edged slightly higher with the initial reaction but seems to be having a difficult time gathering recovery momentum. As of writing, the index was down 0.2% on the day at 103.05.