The consumer price rate increased by 0.5% in January and increased by 3.0% in the last 12 months, according to Bureau of Labor Statistics. Economists surveyed by DOW Jones expected a monthly increase of 0.3% and growth by 2.9% year -on -year.
Core CPI, which excludes unstable prices of food and energy, increased by 0.4% in a month and 3.3% within 12 months. According to Dow Jones, an increase in basic price increases by 0.3% in January and 3.1% year on year.
A hot inflation report may increase the expectations of the next federal reserve rate in the future. The Federal Committee of the Open Market decided to maintain the rates unchanged last month after limiting in the previous three meetings.
“Today's stronger than expected CPI release can further strengthen FOMC's cautious approach to alleviating,” said Whitney Watson in a statement, a global global interaction and a coiner of an investment official with permanent income and liquidity in the management of Goldman Sachs assets.
On Tuesday, Fed Chairman Jerome Powell appeared before the Senate Banking Committee and said that the central bank “does not have to hurry” to reduce interest rates.
“We know that too quickly limiting politics or too much can hinder the progress of inflation. At the same time, it is too slow to reduce the limitation of politics or too little can weaken economic and employment, “said Powell.
Powell will speak again in front of the House Financial Service Committee on Wednesday.
The manufacturer's price index will be published on Thursday.
Investors are also struggling with the potential influence of tariffs, such as US President Donald Trump signed the order On Monday, to add a 25% duty in the import of steel and aluminum.