Inflation dipped in January, CPI report shows. Will that speed up Fed rate cuts?
WASHINGTON (AP) — Annual inflation in the United States cooled last month yet remained elevated in the latest sign that the pandemic-fueled price surge is only gradually and fitfully coming under control.
Tuesday’s report from the Labor Department showed that the consumer price index rose 0.3% from December to January, up from a 0.2% increase the previous month. Compared with a year ago, prices are up 3.1%.
That is less than the 3.4% figure in December and far below the 9.1% inflation peak in mid-2022. Yet the latest reading is still well above the Federal Reserve’s 2% target level
Excluding the volatile food and energy categories, so-called core prices climbed 0.4% last month, up from 0.3% in December and 3.9% over the past 12 months. Core inflation is watched especially closely because it typically provides a better read of where inflation is likely headed. The annual figure is the same as it was in December.
Biden administration officials note that inflation has plummeted since pandemic-related supply disruptions and significant government aid sent it soaring three
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Still, even as it nears the Fed’s target level, many Americans remain exasperated that average prices are still about 19% higher than they were when
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