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US Consumer Inflation Cooled to 6.4% in January, Better than Feared

By:
James Hyerczyk
Updated: Feb 14, 2023, 15:07 UTC

The consumer price index, which measures a broad basket of common goods and services, rose 0.5% in Jan., which translated to an annual gain of 6.4%.

Consumer Price Inflation

In this article:

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.

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.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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