Consumer prices index increased by 0.5% in January, and has increased by 3.0% in the last 12 months, according to the job statistics bureau. The economists who examined Dow Jones expected a monthly increase of 0.3% and a 2.9% increase from year to year.
The basic CPI, which excludes unstable food and energy prices, has increased 0.4% of the month and 3.3% over 12 months. Economists were paid in January at a basic price of 0.3% and 3.1% in the year, according to Dow Jones.
A hot inflation report could encourage expectations from the next federal reserves that decrease in the future. The Federal Committee for the Open Market decided to retain rates unchanged last month after reducing the previous three meetings.
“Today’s stronger than expected CPI release is likely to further strengthen the cautious FOMC approach to mitigation,” Whitney Watson, a global co-ownership investment officer in Fixed Income and Liquidity within the Goldman Sachs Asset Management, said.
Tuesday, Fed Jerome Powell’s President appeared before the Senate The banking board and said that the central bank “should not rush” to further reduce the interest rates.
“We know that a reduction in policy restrictions too fast or too much can interfere with inflation progress. At the same time, reducing policy suppressing too slow or too little could weaken economic activity and employment,” Powell said.
Powell will speak again on Wednesday before the House Financial Services Committee.
The manufacturer’s price index will be announced on Thursday.
Investors also face the potential influence of tariffs, as US President Donald Trump has signed the command On Monday to add 25% of customs duties to steel imports and aluminum.
