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US inflation in January slowed to 6.4%


February, 14 2023
watermark Economic news

According to the United States Department of Labor, consumer prices (CPI) in January increased by 6.4% compared to the same month last year. Thus, inflation slowed down from 6.5% in December.


Nevertheless, the latest data turned out to be worse than analysts' forecasts, who expected a much more significant weakening in the rate of price growth – up to 6.2% on average.


On a monthly basis, the growth rate of consumer prices in January rose sharply from December 0.1% to 0.5%, as expected by forecasts. This is the highest pace since October, and overall the highest in the last seven months. 


The growth of the core index (CPI Core, excluding food and energy prices) was recorded at 5.6%, which is higher than the consensus forecast of 5.5%. In December, the growth was at the level of 5.7%.


The released data confirmed the comments made earlier by Fed Chairman Jerome Powell that it will take time to form disinflation in the service sector. Market participants were once again convinced that the monetary authorities do not yet have sufficient grounds for a pause in tightening monetary policy. In March, the Federal Reserve may raise the key rate by 25 bp – up to 4.75%-5% per annum. At the same time, the option of a step of 50 bp is not excluded.



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