US inflation slows to 6.4% in January
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The consumer price index (CPI) in the US in January amounted to 6.4% in annual terms, according to the US Federal Bureau of Labor Statistics. Thus, inflation slowed down compared to December 2022, when the rate made up 6.5%.
Consumer prices in January rose by 0.5% compared to the previous month (according to the revised data, in December the growth was 0.1%). At the same time, the price of energy increased by 2%, while in December this figure fell by 4.5% at once due to the cheaper gasoline (by 12.5%).
Core inflation (Core CPI, excluding food and energy) increased by 5.6% in annual terms and by 0.4% compared to December. The inflation target of the US Federal Reserve System (FRS) is 2%.
As noted by Reuters, inflation continues to decline. In December, the figure was 6.5%, in November – 7.1%, in October – 7.7%, and in September – 8.2%. The price growth rate reached its maximum in June – 9.1%. At the same time, the agency believes that the Fed will continue to raise rates.
February 1 Fed raised rate by 25 basis points, from 4.25 – 4.5% to 4.5 – 4.75% per annum. Since March 2022, the rate has increased by 450 bp in aggregate. before that, it had not been raised since 2018. Last year, the rate was increased seven times: by 25 b.p. in March, by 50 b.p. in May and by 75 b.p. in June, July, September and November. In December, the rate was raised by 50 bp.
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