Official data reveals US inflation was higher than forecasted last month, causing an unplanned downslide in Wall Street’s pre-market trading on Tuesday. Despite economists’ predictions of the annual rate dropping to 2.9 percent, the actual price growth for January was 3.1 percent. These figures represent a decrease from December’s Consumer Price Index (CPI), which stood at 3.4 percent.
The month-on-month CPI rose by 0.1 percent from December’s 0.2 percent to make 0.3 percent in January, outpacing the expected 0.2 percent. The “core” index, which omits the mercurial food and energy prices, also had a 0.1 percent increase from 0.3 percent to 0.4 percent. This index is regarded as a better gauge of inflation’s likely future trend. The US Bureau of Labor Statistics proclaimed that January’s upward trend was attributed largely to increases in costs for shelter, vehicle insurance, and medical care.
Less optimism about the economy is felt by the majority of Americans, who encounter personal financial struggles. This perception is somewhat countered by the consumer confidence figures released by the University of Michigan, indicating an increase to the highest level since July 2021. As the annual inflation figures ease towards the two percent mark, Federal Reserve policymakers are set to decrease interest rates for the first time in four years, which could come as early as May.
