In January, US CPI inflation surpassed projections, rising to 3.0% while core CPI increased to 3.3%. This led to a stronger dollar and lower US equity futures, suggesting postponed rate cuts until 2026. Despite the alarming figures, the rise is attributed mainly to an end to deflation in core goods and higher energy prices. Positive momentum is still noted in the services sector, particularly housing, indicating that the overall trend might still favor gradual rate reductions as the Federal Reserve reassesses its approach to inflation and interest rates.
US CPI inflation rose to 3.0% in January, signaling a possible slowdown in rate cuts amid upward pressures.
The uptick in inflation is driven by fading core goods deflation and rising energy prices, yet underlying trends remain conducive to future rate cuts.
Collection
[
|
...
]