U.S. January CPI tops estimates for fourth straight year, struggles to reach 2% target this year
BlockBeats news, February 12, financial website Forexlive analysts said the U.S. January CPI for the fourth consecutive year higher than expected. Expectations for the Federal Reserve to cut interest rates this year fell to 31 basis points from 40 basis points before the report was released. Core inflation rose 0.4 per cent from a year earlier, while headline inflation rose 0.5 per cent from a year earlier, making it harder to reach the 2 per cent inflation target this year. Some are talking about California fires raising housing and used car inflation (up 2.2% YoY), or companies jumping on potential tariff hikes. All of these may be true, but unless things reverse quickly, the Fed will wait and see until inflation is very close to 2%.
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