United States: Inflation continues to surge in January
Consumer prices rose a seasonally-adjusted 0.65% over the previous month in January, accelerating from December’s 0.58% rise. Looking at the details of the release, food and beverage prices rose at a quicker pace in January compared to the previous month, while price pressures for transportation eased.
Inflation came in at 7.5% in January, which was up from December’s 7.0%. Meanwhile, the trend pointed up, with annual average inflation coming in at 5.2% in January (December: 4.7%). Lastly, core inflation rose to 6.0% in January, from December’s 5.5%.
Commenting on the latest print, Xiao Cui, VP of U.S. economics at Credit Suisse, noted:
“Inflation has accelerated in recent months from an already elevated level. Along with a pickup in shelter inflation, faster wage growth should help support inflation well above 2.0% going forward, even as the temporary shocks to goods prices fade. This should support the Fed’s decision to begin a hiking cycle in March, with risks of more aggressive tightening sooner.”