Inflation in the US slowed down again, but less than expected

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The consumer price index in the US in January rose by 6.4% in annual terms – slower than expected, which may lead to a tougher decision on the Fed’s discount rate.

It is reported by the Financial Times.

Economists had expected the consumer price index to slow to 6.2% from 6.5%, according to the Reuters consensus forecast. December. Inflation has been gradually slowing down in the US in recent months, but this January figure symbolizes that the improvement in the situation with rising prices in the country has almost stopped.

Excluding energy and food prices, core CPI rose 5.6% year-on-year in January, also down from 5.7% in the previous month. This is comparable to economists’ expectations for a 5.5% year-on-year growth.

The market has been keeping a close eye on US inflation this month, as last month’s US employment report raised expectations that the Fed may need to tighten monetary policy more aggressively.

On this background decreased also oil prices as energy traders anticipate a potential weakening in demand if the Fed tightens more aggressively.

We remind:

The US Federal Reserve continues the cycle raise rates, but again slowed down the pace – after months of increase by 0.5-0.75 percentage points in January, the rate increased by 0.25 percentage points.