Hotter than expected US inflation tempers Fed rate cut expectations

Annual price growth falls to 3.1%

Hopes of interest rate cuts by the Federal Reserve are being “pushed further out” after US inflation came in hotter than expected in January.

According to the Bureau for Labor Statistics, the US Consumer Price Index fell to an annual rate of 3.1% in January, down from 3.4% in December. However, this figure came in higher than the 2.9% anticipated by economists. On a monthly basis, US inflation rose by 0.3% in January, up from 0.2% the previous month and also higher than the 0.2% expected rise. Market remains bullish on rates cuts despite US inflation uptick Core inflation, which does not take into account fuel and energy prices, rose 3.9% over the last 12 months, the same increase as for the 12 months ending December. Mo...