Inflation in the US slows down for the seventh month in a row

Today, February 14, the US Department of Labor reportedthat in January the consumer price index rose by 0.5% compared to the previous month and by 6.4% by January 2022. On an annualized basis, US inflation has slowed for the seventh straight month, peaking at 9.1% in June. However, in terms of monthly dynamics (+0.5%), the January figure was the highest since October 2022. In December inflation growth in monthly terms amounted to only 0.1%.

Interviewed Bloomberg analysts had expected a smaller annualized growth (+6.2%) in January, but correctly predicted the monthly inflation rate. The Ministry notes that in addition to energy prices (+2%) and related transport costs (+0.9%), living expenses (protection category – rental housing, hotel accommodation, insurance costs for owners) made a significant contribution to January inflation. and tenants) – +0.7%, while food prices showed a more moderate increase (+0.5%). Decrease in prices against December was recorded in such categories as used cars (-1.9%) and medical services (-0.7%).

The American stock market was expecting data on January inflation, since the further policy of the Fed in relation to the base discount rate largely depends on them. In early February, the Fed slowed down the pace of raising the key rate to 0.25%, setting it at the level of 4.5–4.75% per annum and noting the weakening of inflationary pressure in the United States.

In the first hours after the release of data on January inflation, US stock indices showed a relative increase of 0.7-1%.

Evgeniy Khvostik