The United States recorded an annual rate of 6.4% in January, the smallest increase since October 2021

It is reported that the annual rate of US CPI in January was not seasonally adjusted at 6.4%, expected to be 6.20%, and the previous value was 6.50%. The core CPI annual rate of the United States in January was not seasonally adjusted at 5.6%, expected at 5.50%, and the previous value was 5.70%. The annual rate of the United States’ un-quarter adjusted CPI recorded 6.4% in January, the seventh consecutive month of decline, the smallest increase since October 2021.

Interpretation of this information:

According to the latest report, the US Consumer Price Index (CPI) for January recorded an annual rate of 6.4%, which is slightly higher than the expected rate of 6.2%, but lower than the previous value of 6.5%. This indicates that the inflation rate in the country remains high, although it is slowly declining. The core CPI, which excludes volatile food and energy prices, recorded an annual rate of 5.6%, also slightly above the expected rate of 5.5%, but lower than the previous value of 5.7%. The report also shows that the unadjusted CPI recorded 6.4% in January, which is the smallest increase since October 2021.

The high inflation rate in the US has been a major concern for policymakers, as it can lead to erosion of purchasing power, reduced economic growth, and social unrest. The pandemic-related supply chain disruptions, fiscal stimulus measures, and the shift towards remote work and home-based activities have contributed to the upward pressure on prices. However, the recent data suggests that some of these pressures may be easing, as evidenced by the lower inflation rate and declining trend. This may provide some relief to consumers, businesses, and investors.

Overall, the latest report on US CPI shows that the inflation rate remains high but is slowly declining, while the core CPI is also slightly above expectations but still lower than the previous value. The unadjusted CPI recorded the smallest increase since October 2021, which suggests that some of the inflationary pressures may be moderating. Such developments will be closely watched by the Federal Reserve and other stakeholders, as they determine the best course of action to promote price stability, economic growth, and financial stability.