US Consumer Inflation Cooled to 6.4% in January, Better than Feared
US inflation jumped at the start of 2023, driven higher by rising gas and fuel prices, according to the Labor Department.
The consumer price index, which measures a broad basket of common goods and services, rose 0.5% for the month, which translated to an annual gain of 6.4%. Excluding volatile food and energy, core CPI increased 0.4% monthly and 5.6% from a year ago.
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Ahead of the report, Investors were expecting the headline Consumer Price Index (CPI) to show a 0.4% increase in January, which would translate into 6.2% annual growth, according to Dow Jones. Excluding food and energy, the so-called core CPI was projected to rise by 0.3% and 5.5%, respectively.
Market Reaction
U.S. stock futures crept higher in the early trade Tuesday as Wall Street awaited the major inflation reading that could have a major influence on the Federal Reserve’s path forward for interest rates.
After the January numbers were released, stock futures extended the uptrend. Gold futures also move higher as U.S. Treasury yields fell.