Home » US CPI rises 3.1% in January after expectations of interest rate cut, dollar strengthens | Reuters

US CPI rises 3.1% in January after expectations of interest rate cut, dollar strengthens | Reuters

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US CPI rises 3.1% in January after expectations of interest rate cut, dollar strengthens | Reuters

[ワシントン 13日 ロイター] – The Consumer Price Index (CPI) for January announced by the US Department of Labor on the 13th increased by 3.1% compared to the same month last year. Although the growth was slower than the 3.4% increase seen last month, it exceeded market expectations of 2.9%, mainly due to higher housing costs. However, it seems unlikely that the US Federal Reserve will change its outlook that it will start lowering interest rates in the first half of this year.

It also increased by 0.3% from the previous month. The forecast was for a 0.2% rise.

The core index, which excludes volatile food and energy, rose 3.9% from the same month last year, flattening its growth since December. It increased by 0.4% from the previous month. This accelerated from 0.3% in December and is the highest since May last year. Expectations were for a 3.7% rise and a 0.3% rise, respectively.

“It’s important not to overreact and jump to the view that inflation is returning,” said Seema Shah, chief global strategist at Principal Asset Management. “This was driven by increases in a less important component of the expenditure (PCE) price index. Based on the leading index, price increases in these sectors will moderate in the coming months.”

In response to the CPI, interest rate futures markets are increasingly betting that June will be the time when the Fed has enough confidence that inflation will come down to begin lowering rates. Previously, the prevailing view was that interest rate cuts would begin at the Federal Open Market Committee (FOMC) meeting between April 30 and May 1. See more In the foreign exchange market, the dollar rose against the yen, reaching the 150 yen level for the first time since November last year.See more

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The year-on-year growth in CPI has slowed from its peak (9.1%) in June 2022. Treasury Secretary Yellen said, “YoY growth in the CPI in January was 3.1%, 6 percentage points below the peak reached in June 2022,” indicating that progress is being made in the fight against inflation. It is pointed out that there is. He said, “There was a view that a recession was necessary to reduce inflation, but a recession has not materialized.”

In a statement, President Biden noted the slowdown in year-on-year growth and acknowledged that “there is still work to do” to bring down inflation.

The Consumer Price Index (CPI) for January announced by the US Department of Labor on the 13th increased by 3.1% compared to the same month last year. Photographed in March 2022 (2024 Reuters/Andrew Kelly)

Housing costs, including rent and accommodation costs, rose significantly in January. The new weights announced last week increased the share of housing and lowered the share of new and used cars. As a result, housing costs accounted for more than two-thirds of the CPI increase in January.

Imputed rent (OER) increased by 0.6%. Growth accelerated from 0.4% in the previous month.

Food prices rose 0.4%. The increase was the largest in a year, due in part to bad winter weather. In addition to the rise in sugar and fats and oils, prices for non-alcoholic drinks rose by 1.2% and prices for fruits and vegetables rose by 0.4%. On the other hand, prices of grains and other items have declined. Meat, eggs, and fish remained flat.

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Gasoline prices fell 3.3%.

In addition, car insurance premiums rose by 1.4%. Entertainment, communications, airfares and education also rose. Meanwhile, used cars and trucks fell 3.4%. This was the steepest decline since May 1969. Clothing also fell. It was the first significant decline in about three years.

Prices of goods (goods) fell by 0.3%. It was flat in December.

Service prices increased by 0.7%. The growth accelerated from December’s 0.4% and was the largest in a year.

Inflation gaugesReuters Graphics Reuters GraphicsReuters GraphicsReuters Graphics

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