Price increases in the United States continued to decline in January 2024, slowing from 3.4 to 3.1 percent over a 12-month period. This was reported on Tuesday by the American news site NBCnews, citing the Bureau of Labor Statistics.
Core inflation, closely monitored by the US Federal Reserve, excluding food and gas prices, was unchanged at 3.9 percent compared to December 2023.
The data showed an unexpected increase in the cost of housing, which includes rent and home ownership. These increased more than six percent in twelve months.
Analysts expected a steeper drop
Overall, the January data fell short of expectations: Economists surveyed previously expected a figure of 2.9 percent. They had assumed core inflation of 3.7 percent. The actual numbers are higher, which means that hopes of an imminent US interest rate cut are diminishing.
The stock markets reacted accordingly: the Dow Jones lost a good one percent in early trading. The tech-heavy Nasdaq opened more than two percent in the red. The broad S&P 500 started with a 1.3 percent loss.
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