FOREX TradingCharts.com

Financial News: U.S. Consumer Prices Climb 0.5% In January, More

U.S. Consumer Prices Climb 0.5% In January, More Than Expected

02/12/2025 - 09:42:00 (RTTNews)

(RTTNews) - Consumer prices in the U.S. increased by more than expected in the month of January, according to a report released by the Labor Department on Wednesday.

The Labor Department said its consumer price index advanced by 0.5 percent in January after climbing by 0.4 percent in December. Economists had expected consumer prices to rise by 0.3 percent.

The report also said the annual rate of consumer price growth accelerated to 3.0 percent in January from 2.9 percent in December, while economists had expected the pace of growth to remain unchanged.

"The jump in consumer prices in January supports our view that the Fed will hold rates steady at least through Q3 of this year," said Nationwide Chief Economist Kathy Bostjancic. "As such, we now see just one 25-bps rate cut in Q4."

"Previously we expected a rate cut in Q3 and Q4," she added. "The Fed will remain on the sidelines as it assesses the evolving economic, inflation, and policy landscape."

The bigger than expected monthly increase by consumer prices partly reflected a continued surge by energy prices, which shot up by 1.1 percent in January after spiking by 2.4 percent in December.

Excluding the jump by energy prices as well as a 0.4 percent increase by food prices, core consumer prices rose by 0.4 percent in January after inching up by 0.2 percent in December. Core prices were expected to increase by 0.3 percent.

The annual rate of core consumer price growth also ticked up to 3.3 percent in January from 3.2 percent in December. Economists had expected the pace of growth to slow to 3.1 percent.

The monthly core consumer price growth reflected a 0.4 percent increase by shelter costs as well as higher prices for motor vehicle insurance, recreation, used cars and trucks, medical care, communication, and airline fares.

Meanwhile, the report said prices for apparel, personal care, and household furnishings and operations were among the few that decreased in January.

The Labor Department is scheduled to release a separate report on Thursday on producer price inflation in the month of January.

Economists currently expect producer prices to increase by 0.3 percent in January after rising by 0.2 percent in December, while the annual rate of growth is expected to dip to 3.2 percent from 3.3 percent.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2025 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS


U.S. Consumer Sentiment Plunges To Lowest Level In Over Two Years (35 min(s), 44 sec(s) ago)
(RTTNews) - Largely reflecting a substantial deterioration in consumer expectations, the Universit ...Full Story»

Slovakian Inflation Eases Slightly To 3.8% (32 min(s), 44 sec(s) ago)
(RTTNews) - Slovakia's consumer price inflation eased marginally in February from a 1-year hig ...Full Story»

Polish Inflation Remains Stable At 4.9% (53 min(s), 44 sec(s) ago)
(RTTNews) - Poland's consumer price inflation held steady in February, data from Statistics Po ...Full Story»

Spain Inflation Rises To 8-Month High As Estimated (16 min(s), 44 sec(s) ago)
(RTTNews) - Spain's consumer price inflation rose to an eight-month high in February, as estim ...Full Story»

Sweden Jobless Rate Falls To 9.4% (04 min(s), 44 sec(s) ago)
(RTTNews) - Sweden's jobless rate decreased in February to the lowest level in three months, f ...Full Story»

German Wholesale Price Inflation Highest In Nearly 2 Years (25 min(s), 44 sec(s) ago)
(RTTNews) - Germany's wholesale prices increased for the third straight month in February, and ...Full Story»

UK Inflation Expectations Rise: BoE/Ipsos Survey (20 min(s), 44 sec(s) ago)
(RTTNews) - UK inflation expectations increased in February, the latest quarterly Inflation Attitu ...Full Story»

Italy Industrial Production Rebounds 3.2% (52 min(s), 44 sec(s) ago)
(RTTNews) - Italy's industrial production bounced back sharply at the start of the year, data ...Full Story»

Search

INTERNATIONAL FINANCIAL NEWS

U.S. Consumer Sentiment Plunges To Lowest Level In Over Two Years

03/14/2025 - 10:24 AM (RTTNews)
(RTTNews) - Largely reflecting a substantial deterioration in consumer expectations, the Universit ...Full Story>>

Slovakian Inflation Eases Slightly To 3.8%

03/14/2025 - 09:21 AM (RTTNews)
(RTTNews) - Slovakia's consumer price inflation eased marginally in February from a 1-year hig ...Full Story>>

Polish Inflation Remains Stable At 4.9%

03/14/2025 - 08:42 AM (RTTNews)
(RTTNews) - Poland's consumer price inflation held steady in February, data from Statistics Po ...Full Story>>

Spain Inflation Rises To 8-Month High As Estimated

03/14/2025 - 08:05 AM (RTTNews)
(RTTNews) - Spain's consumer price inflation rose to an eight-month high in February, as estim ...Full Story>>

Sweden Jobless Rate Falls To 9.4%

03/14/2025 - 07:53 AM (RTTNews)
(RTTNews) - Sweden's jobless rate decreased in February to the lowest level in three months, f ...Full Story>>

Do not sell my personal information

Copyright © 2025. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.