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The consumer price index (CPI) increased by 3 % in January of the previous year – faster than expected.
The consumer price index increased by 0.5 % last month, after an increase of 0.4 % in December, the work statistics office I mentioned Wednesday. This is more than 0.3 % expected by Wall Street, according to estimates assembled by FactSet (FDS-0.36 %).
The basic inflation, with the exception of flying food and energy, increased by 0.4 % in Januaryand BLS said, while analysts expected a 0.3 % increase compared to a previous month. Basic inflation increased on an annual basis 3.3 %, while analysts expected the basic inflation to decrease to 3.1 % from 3.2 %.
The industrial average decrease and other indicators of the stock market fell on Wednesday morning after the news. Dow decreased 450 points, or 1 %, shortly after opening markets. S&P 500 and NASDAQ decreased by 0.8 %
After three consecutive meetings that led to discounts, the Federal Open Market Committee (FOMC) decided last month to maintain the standard federal funds rate at 4.25 % -4.50 %. In the last months of 2024, FOMC has reduced prices by a full percentage.
The Chairman of the Federal Reserve Bank, Jerome Powell, who witnessed before Congress this week to submit its annual monetary policy report, said recently that the central bank will need a “real progress” vision of inflation or weakness in the labor market before making amendments. “We do not need to be in a hurry to control our position on politics,” He told reporters On January 29.
Last week, BLS stated that the unemployment for January decreased slightly to 4.0 % from 4.1 %, with only 143,000 salary balls, less than street expectations. However, the agency also announced an ascending review of non -agricultural salaries for November and December by 100,000 group jobs.
The horizon behind the US economy is the threat of President Donald Trump’s tariff, which has already started a trade war with China. Additional customs duties are scheduled to reach Canadian and Mexican imports in March, while international duties are on Steel and aluminum It is also in business.
“While we are optimistic with caution in early 2025, we see much more negative potential this year than we have in the two years and we now believe that the time has come to be cautious and enter the back of the dangers,” Chris Zakarili, chief investment official in North Direight Asset Management, said last week, Pointing to the customs tariff as a source of concern.
Investors will take a look at the producers’ price index on Thursday morning, followed by US import and export price indicators on Friday. Both can have significant effects on Wall Street and the general American economy.