Consumer prices rose more than expected in January, according to CNBC.
The numbers: “The consumer price index . . . rose 0.5% in January, which translated to an annual gain of 6.4%. Economists surveyed by Dow Jones had been looking for respective increases of 0.4% and 6.2%.”
- “Excluding . . . food and energy, the core CPI increased 0.4% monthly and 5.6% from a year ago, against respective estimates of 0.3% and 5.5%.”
What’s up: Prices rose for transportation services, shelter, medical care commodities, new vehicles and household furnishings and supplies.
- However, prices of used cars and trucks and medical care services dipped.
The NAM says: NAM Chief Economist Chad Moutray put these numbers into context, pointing out that the year-over-year rate of 6.4% is slightly lower than December’s 6.5%, and the lowest rate since October 2021.
- “The moderation in inflation is welcome news for the Federal Reserve, manufacturers and consumers, but there is still more work to be done to wring inflation out of the U.S. economy further,” he said.
Coming up: The Federal Open Market Committee will likely increase the interest rate by 25 basis points at both the March 21–22 and May 2–3 meetings before pausing rate hikes, added Moutray.