The consumer price index increased by 0.5% in January and is up 3.0% in the last 12 months, according to the Bureau of Labor Statistics. The economists interviewed by Dow Jones expected a monthly increase of 0.3% and an increase of 2.9% from one year to another.
Basic CPI, which excludes volatile prices from food and energy, increased by 0.4% for the month and 3.3% over 12 months. According to Dow Jones, economists had cried basic price increases of 0.3% in January and 3.1% from one year on the other.
The hot inflation report could push the expectations of the next federal reserve rate reduced more in the future. The Federal Open Market Committee chose to maintain the unchanged prices last month after having reduced the three previous meetings.
“Today, the liberation of the IPC is likely to consolidate the prudent approach to fomcating FOMC,” said Whitney Watson, a global co-chief and responsible for co-chef investments of fixed income solutions and liquidity within Goldman Sachs Asset Management, in a press release.
Tuesday, the president of the Fed, Jerome Powell, appeared in front of the Senate Bank committee, and said that the central bank “did not need to be in a hurry” to further reduce interest rates.
“We know that the reduction in the restraint of policies too quickly or too much could hinder the progress of inflation. At the same time, reduce the restriction of policies too slowly or too little could unduly weaken economic activity and employment” Powell said.
Powell will once again express themselves in front of the Chamber’s Financial Services Committee on Wednesday.
The producer prize index will be published on Thursday.
Investors are also struggling with the potential impact of prices, as American president Donald Trump signed an order Monday to add 25% rights to steel and aluminum imports.
