Axios

Don't wave goodbye to inflation just yet, Nathan writes.

• Prices rose 3.4% in December, compared with a year earlier, federal officials reported today.
• That's more than what was expected, and it's a pickup compared to the 3.1% number for November.

What they're saying: The report "should keep the Fed from declaring victory on inflation," Bank of America economists wrote, though they added that "the overall progress towards the 2% target is undeniably encouraging."

• Sticky inflation though, if sustained, could complicate expectations of near-term interest rate cuts, our Axios Markets colleagues noted.

Baseball superstar Shohei Ohtani's new contract is rankling California's financial boss, Nathan writes.

State of play: The state's controller, Malia Cohen, wants Congress to close a loophole that she says unfairly allows Ohtani to limit the tax liability on his new 10-year, $700 million contract with the Los Angeles Dodgers.

Catch up quick: The pitcher-hitter phenom structured his deal to defer $680 million in compensation until after 2033 when he can presumably move out of California to avoid the state's high income tax rates.

• As a result, the state would lose out on an estimated $98 million in tax revenue, according to California Center for Jobs and the Economy figures cited by the LA Times.

Tesla and the United Auto Workers are laying the groundwork for a collision over whether the EV maker should be unionized.

Why it matters: After winning record contracts at General Motors, Ford and Stellantis, the UAW has Tesla in its sights — along with 12 other non-unionized automakers with operations in the U.S.

A mammoth double chocolate chunk cookie is rolling out to Costco food courts and replacing the fan-favorite twisted churro.

Why it matters: The new treat has mixed reviews among loyal Costco members who take the food court menu and free samples seriously.

Score one for those who warned inflation would be hard to conquer. December's inflation report shows why that might be the case.

Why it matters: The nation is past the crisis inflation era seen in recent years. But prices in key areas of the economy are still rising more quickly than consumers — and policymakers — would like.

Here's what's new on Netflix, Apple TV+, Paramount+, Peacock, Prime and Hulu.

Situational awareness: Martin Scorsese's "Killers of the Flower Moon," starring Leonardo DiCaprio, Lily Gladstone and Robert De Niro, will be available to stream Friday on Apple TV+.

What we're watching: A prequel to 2012's "Ted" in the form of a TV show, a new reality competition series from Netflix and a new Marvel show.

Microsoft is nipping at the heels of longtime leader Apple, in the never-ending race to be the largest U.S. company.

Why it matters: It's another sign of how the emergence of artificial intelligence is prompting a reshuffling of the giant tech companies that dominate the market and heavily influence the U.S. economy.

Circle, the largest U.S. issuer of stablecoins, has filed confidential IPO papers with securities regulators.

Why it matters: Stablecoins have been one of the hottest topics for regulators in the digital assets space, and Circle pitches itself as a company ready and willing for regulatory compliance.

Inflation pressures reignited as energy and shelter prices rose: the Consumer Price Index rose 0.3% in December, the Labor Department said on Thursday.

Why it matters: Inflation picked up at the end of the year, interrupting a cooldown that continued for much of 2023.