Inflation in the US exceeds expectations

The Consumer Price Index (CPI) in the US rose by 0.3 percent on a monthly basis and 3.1 percent on an annual basis in January, coming in above market expectations.

The US Department of Labor announced the consumer inflation data for January. Accordingly, the cost of living for American consumers increased by 0.3 percent in January compared to the previous month.

Market expectations were for the CPI to increase by 0.2 percent during this period. Monthly inflation, which reached its highest level in the last four months in January, had been revised to 0.2 percent in December of last year.

In the country, the CPI recorded an increase of 3.1 percent on an annual basis in January.

Annual inflation, which came in above market expectations, exceeded the 2.9 percent forecast and had been 3.4 percent in December 2023.

The shelter index, which continued its rise during the period in question, increased by 0.6 percent on a monthly basis and 6 percent on an annual basis in January. While the food index rose by 0.4 percent in January, the energy index fell by 0.9 percent, largely due to the decline in the gasoline index.

Core CPI, which excludes volatile energy and food prices, also rose by 0.4 percent monthly in January. In January, core inflation continued to remain at its lowest level in approximately 2.5 years on an annual basis at 3.9 percent.

Market expectations were for core CPI to increase by 0.3 percent on a monthly basis and 3.7 percent on an annual basis in January.

Core inflation was 0.3 percent monthly and 3.9 percent annually in December of last year.

News Source: AA