US Annual Inflation Moderates Slightly in January

It is reported that the annual rate of US CPI in January was not seasonally adjusted at 6.4%, expected to be 6.20%, and the previous value was 6.50%. The core …

US Annual Inflation Moderates Slightly in January

It is reported that the annual rate of US CPI in January was not seasonally adjusted at 6.4%, expected to be 6.20%, and the previous value was 6.50%. The core CPI annual rate of the United States in January was not seasonally adjusted at 5.6%, expected at 5.50%, and the previous value was 5.70%. The annual rate of the United States’ un-quarter adjusted CPI recorded 6.4% in January, the seventh consecutive month of decline, the smallest increase since October 2021.

The United States recorded an annual rate of 6.4% in January, the smallest increase since October 2021

Analysis based on this information:


The latest report on US inflation reveals a slight moderation in the annual rate of Consumer Price Index (CPI) for January, which stood at 6.4%. This is slightly higher than the expected rate of 6.2% but represents a decline from the previous month’s rate of 6.5%. The core CPI annual rate, which excludes volatile food and energy prices, also eased in January, recording a not-seasonally-adjusted rate of 5.6% compared to 5.7% in December.

While the dip in headline inflation may be seen as a positive sign for many, the figures still suggest significant pressure on consumer prices. The un-quarter adjusted CPI, which takes into account normal seasonal fluctuations in prices, saw a similar rate of 6.4% in January, marking the seventh consecutive month of increase. However, it was the smallest monthly increase since October 2021, indicating some easing in inflationary pressures on the economy.

The report is likely to provide some relief to policymakers who have been grappling with an inflationary surge, driven by supply chain disruptions, pandemic-related restrictions, and unprecedented fiscal stimulus. The Federal Reserve, which has a mandate to maintain stable prices and maximize employment, has been watching the inflation trends closely and has signaled a readiness to raise interest rates if the situation persists.

The slight moderation in inflation may also have important implications for the US economy as a whole. High inflation has eroded the purchasing power of consumers, curtailed business investment, and led to budgetary challenges for governments at all levels. A moderation in CPI could help reduce uncertainty and boost confidence in the economic recovery, although much will depend on how much prices stabilize in the coming months.

In summary, the latest US inflation report suggests a slight moderation in the annual rate of CPI and core CPI for January, although both figures remain elevated in historical terms. The un-quarter adjusted CPI also recorded a smaller monthly increase, pointing to some ease in inflationary pressures. The report is likely to be closely watched by policymakers and investors as the US economy continues to navigate the aftermath of the pandemic.

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