The key takeaway from Friday's US data was that the Fed's favored measure of inflation cooled again, having decreased by 0.3% in December.

The index was up 4.7% year-on-year in November, but in December it was only at 4.4%. Both reports are likely to influence the interest rate decisions of the Fed at this week's FOMC meeting.

The data could convince Fed officials to maintain the extremely aggressive monetary policy, which consists of additional rate hikes and the continuation of higher rates for a longer period of time. The most likely outcome is that the bank will raise rates by a quarter percentage point at its next two meetings.

The Federal Reserve has stated that it will continue to work towards its 2% inflation target, but the vast majority of market players believe that it will renege on its commitment to maintain high rates until the end of 2023.