
Summary of Key Points on U.S. January CPI Inflation Data
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The overall CPI rose by 0.2% month-on-month, lower than economists' expectations; while the core CPI, excluding food and energy, rose by 0.3%, in line with expectations. The 1.5% decline in energy costs is the main reason for the overall slowdown in inflation, bringing its monthly growth rate to the lowest level since July of last year.
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On an annualized basis, the overall inflation rate is 2.4%, and the core inflation rate is 2.5%. This marks the smallest year-on-year increase in core prices since the surge in the cost of living in the spring of 2021. Economists point out that these readings are broadly consistent with the Federal Reserve's 2% inflation target—although this target relies on another measure, the Personal Consumption Expenditures Price Index (PCE), which has been running faster than the CPI recently
