According to the Bureau of Labor Statistics, the consumer price index rose 0.5% in January and 3.0% in the past 12 months. Economists surveyed by the Dow Jones expect monthly growth of 0.3% and 2.9% year-on-year.
Core CPI, which excludes volatile food and energy prices, rose 0.4% this month and 3.3% in 12 months. Dow Jones said the core price of economists rose 0.3%, up 3.1% year-on-year.
The hot inflation report could drive expectations for a further reduction in the next Fed rate. The Federal Open Market Committee chose to keep interest rates unchanged last month after cutting its first three meetings.
“Today’s CPI release is stronger than expected,” Whitney Watson, global co-director and co-host investment officer for fixed income and liquidity solutions in Goldman Sachs Asset Management, said in a statement. The cautious approach to FOMC can be further consolidated.”
Jerome Powell, chairman of the Federal Reserve, Tuesday Appear in front of the Senate The bank committee said the central bank “does not have to rush” to further reduce interest rates.
“We know that reducing policy restrictions too quickly or too much will hinder the progress of inflation. At the same time, reducing policy restrictions too slowly or too little will overpower economic activity and employment,” Powell said.
Powell will speak again before the House Financial Services Committee on Wednesday.
The producer price index will be released on Thursday.
Investors are also struggling to cope with the potential impact of tariffs as U.S. President Donald Trump signs order On Monday, a 25% increase in steel and aluminum import taxes.
