Inflation rises by 3 % in January, and more hot than expected

The inflation rose to the top in January with the continued increase in the stubborn prices in attracting financial affairs to the Americans, as the Federal Reserve weighs a continuous pause of interest rates.

The Ministry of Labor said on Wednesday that the consumer price index – a wide measure of the amount of daily commodities such as gasoline, groceries and the cost of rent – rose 0.5 % in January while it rose to 3 % on an annual basis. The annual number is the highest since June 2024.

Each of the annual consumer price index and addresses were more hot than the estimates of Economists included in LSEG, who expected inflation by 0.3 % on a monthly basis and 2.9 % from last year, and in the readings of last month came by 0.4 % and 2.9 %, respectively.

The so -called basic prices, which exclude more volatile measurements of gasoline and food to better assess price growth trends, increased by 0.4 % in January and 3.3 % on an annual basis and were more hot than expected. Economists estimated LSEG a monthly increase of 0.3 % and an annual increase of 3.1 %. Both numbers were 0.1 percent higher than last month.

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The report showed that inflationary pressures in the American economy are still fixed despite the progress of inflation from the Federal Reserve goal by 2 % over the past two years.

Creating high inflation is severe financial pressure for most American families, which are forced to pay more for daily necessities such as food and rent. It is especially difficult for low -income Americans, because they tend to spend more salary that has already been placed on necessities and have less flexibility to save money.

Energy costs increased by 1.1 % in January, a slower frequency than 2.4 % reading in December. Gas prices increased by 1.8 % last month, while natural gas prices rose with the same amount.

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Food prices increased by 0.4 % in January. The dining index at home increased by 0.5 % for this month, with a 15.2 % increase in the cost of eggs, which represents about two -thirds of the total increase of the index. Fruits and vegetable prices have helped compensate for some increase in the index, as they decreased by 0.5 % for this month, while grains and bakery products decreased by 0.4 %.

Food increased from the home index by 0.2 % in January. The price of the limited service meals increased by 0.3 % for this month, while the full service meals witnessed a 0.1 % increase.

Housing prices increased by 0.4 % in January and constituted approximately 30 % of the monthly consumer price index. Compared to last year, shelter prices increased by 4.4 %, which the Ministry of Labor has noticed is 12 months ago since January 2022.

Transport costs increased by 1.8 % in January and increased by 8 % from last year. Car insurance prices were a major contributor, as it increased 2 % in January and 11.8 % over last year. The price of airlines increased by 1.2 % last month and increased by 7.1 % from last year.

The Federal Reserve maintains fixed interest rates amid uncertainty in inflation

The data comes after the Federal Reserve announced a stopping of plans to reduce interest rates at the central bank meeting last month, leaving the rate of standard federal funds in a target range from 4.25 % to 4.5 %. The President of the Federal Reserve, Jerome Powell, pointed out that policy makers are not hurry to reduce interest rates more and will monitor inflation readings as well as labor market data because they weigh their next step.

Bill Adams said: “Some of the printing of bad inflation in January due to one time factors, such as high egg prices, with a high bird flu in all parts of the country’s agricultural industry, or cold sanctions per month and tougher sanctions on Russia that raise the prices of fuel oil.” . Economic expert for the Compurica Bank. “But other inflationary pressures seem to be as if companies are reseting prices at the end of the year to pass the growing expenses they felt in 2024.”

“The Federal Reserve will witness the printing of hot inflation in January, as confirmation that price pressures continues in the bubble under the surface of the economy. This will enhance the tendency of the Federal Reserve at least slow slow and perhaps even discounts at the end rate in 2025. Adams added These policies may add that Adams is that these policies may add that Adams may destroy that these policies can add to inflation as their effects are that their effects are that their effects are that these policies may be that these policies are It may add to inflation where Adams ripples: “It can add definitions that each of the engagement can add to the speeches

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The market’s reaction to CPI print in January and the possibility of the Federal Reserve left unchanged rates in the upcoming policy meeting in March to 97.5 %, up from 95 % a day and 83 % last week, according to the CME Fedwatch tool.

This is a developing story. Please check again for updates.