Prices rose 0.5% in January in the US, when 0.4% was expected, and marks a sharp contrast to the 0.1% decline in the previous month. The annual rate remained at 6.4%, one tenth below the rate for December (6.5%), but above the annualized 6.2% that was forecast, according to information from the federal Office of Labor Statistics. .
These data represent the seventh consecutive month of falling inflation and reflect that it is cooling off after last summer's peak of 9.1%. However, it becomes clear that the route is complicated and bumpy. It also means that the Federal Reserve (Fed) understands that its work is not finished and that it will continue with its aggressive policy, which has led to eight consecutive increases in interest rates since last March, leaving the price of money at 4.50. -4.75% Everything indicates that soon it will exceed 5%.
Prices rose in the first month of 2023 due to the increase in housing, gas and fuel. If the most volatile elements such as energy and food are excluded, the so-called core of the consumer price index grew 0.4% from one month to the next and this means that the annualized value remains at a growth of 5.6% compared to to January 2022. The estimate was somewhat lower, 0.3% and 5.5% respectively.
Markets responded with volatile moves, causing the Dow to go mostly flat to begin with.
The rise in the real estate sector accounted for almost half of the monthly rise. It grew by 0.7% and was placed at a price increase of 7.9% compared to a year ago. Energy also made a significant contribution, climbing 0.2% and 8.7% respectively. The cost of food rose 0.5%, with eggs still skyrocketing, and this equates to 10.1% year-on-year.
The rise of 0.5% in January is the biggest since October, the latest sign that crushing inflation to the 2% target set by the Fed will not be a consistent decline path.
Jerome Powell, president of the Federal Reserve, warned last week that bells and whistles could not be called off despite having detected signs of a decline in prices. This is partly because the labor market is much more resilient than expected to the aggressive policy of the US central bank, and wages continue to rise.
