Whether you look at the core personal consumption expenditure index on a monthly basis or a year over year basis, the inflation trend is basically 'steady Eddie.

The 1.9 percent December year-over-year rise in the core personal consumption expenditure index reflects a stable and modest inflation rate. That would support the idea that the Fed can stop raising rates soon.

It's a good sign that the consumer has some momentum going into the start of the year and that probably reflects the fact that the labor market is continuing to improve, albeit modestly. It's a positive for economic growth this year.

Importantly, on a year-over-year basis, the core CPI continued to inch higher,

Spending was up, a little weaker than expected... Nevertheless, the trend has been upward and it looks like the consumer is still in the ballgame in terms of supporting economic growth.

The fact that the final number is higher than the preliminary number shows that the American consumer is not going to be easily intimidated.