Inflation in January was in line with expectations. Consumer prices were out of place, compared to December 2018, where analysts expected a small increase of 0.1%. Core inflation came to 0.2%.
Inflation rates are important for investors because the US central bank Fed bases its interest rate decisions on it. Americans pay more for their clothing, housing and care, but less for car fuel.
“Inflation is at least different from expectations,” says Stefan Koopman, a macro economist at Rabobank. “The Fed has already said that they will be patient with raising interest rates, which they really will not pull over.”
Compared to a year earlier, inflation is also hardly higher than expected. Consumer prices rose by 1.6% year on year, where the prognosis was 1.5%. Core inflation was also not far from expectations at 2.2%.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.