US CPI Data for January released, inflation numbers throw surprise

financialexpress.com:

The latest inflation numbers show that the US inflation rate is above forecasts. The annual inflation rate in the US fell back to 3.1% in January 2024 following a brief increase to 3.4% in December but came higher than forecasts of 2.9%. Compared to the previous month, the CPI edged up 0.3%, the most in four months, and above forecasts of 0.2%. Also, annual core inflation held steady at 3.9%, compared to expectations it would slow to 3.7%. The monthly rate edged up to 0.4%.

The latest inflation numbers also show that the US Core CPI has risen more than expected. The US core consumer prices, which exclude volatile items such as food and energy, rose by 0.4% from the previous month in January of 2024, accelerating from the 0.3% increase in the earlier period and above market expectations of a 0.3% increase. The sharpest increase in core consumer prices since April 2023 challenges the US economy’s disinflation trend and strengthens the FOMC’s case for hawks.

The all items index rose 3.1 percent for the 12 months ending January, a smaller increase than the 3.4-percent increase for the 12 months ending December.

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in January on a seasonally adjusted basis, after rising 0.2 percent in December, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.1 percent before seasonal adjustment.

The all items less food and energy index rose 3.9 percent over the last 12 months, the same increase as for the 12 months ending December. The index for all items less food and energy rose 0.4 percent in January.

The annual core consumer price inflation rate in the United States, which excludes volatile items such