The key interest rate is now in the range of 4.50 to 4.75 percent.
(Photo: dpa)
Frankfort, New York The price pressure in the USA eased further at the beginning of the year. Consumer prices rose by 6.4 percent in January compared to the same month last year. The US Department of Labor announced on Tuesday.
Economists had expected an inflation rate of 6.2 percent. In December 2022, inflation was still 6.5 percent. The fall in January is the seventh in a row. Compared to December 2022, prices increased by 0.5 percent (forecast: 0.4 percent).
Core inflation, which excludes the volatile items of energy and food, rose 5.6 percent compared to January 2022 – the lowest rate since December 2021 – and 0.4 percent compared to December 2022. The expectation was in each case 0.1 percentage points below.
In view of falling inflation rates, the US Federal Reserve recently slowed down the rate hike cycle. At their most recent meeting, monetary authorities raised interest rates by a quarter of a percentage point to between 4.50 and 4.75 percent. After a series of major interest rate hikes, a degree of normality has returned to monetary policy. Nevertheless, Fed Chair Jerome Powell emphasized that interest rates will continue to rise.
More to come