1 month ago
Economic Indicators

U.S. Inflation Flat in January, Supporting Fed’s Rate Slow Down

Investing.com - U.S. consumer prices were unchanged in January, while the annual rate of inflation slowed markedly. The Labor Department

Investing.com - U.S. consumer prices were unchanged in January, while the annual rate of inflation slowed markedly.

The Labor Department said its consumer price index (CPI) was flat last month. In the 12 months through January, the CPI rose at a rate of 1.6%, slower than the 1.9% seen in December.

The data is consistent with the slowdown in the economy at the end of last year that has led the Federal Reserve to put further interest rate increases on hold for now.

Economists polled by Investing.com had forecast the CPI to rise 0.1% on the month and increase 1.5% from a year ago.

The core CPI, which strips out volatile food and energy costs, increased by 0.2% from a month earlier and rose 2.2% in the 12 months through January.

In a speech on Tuesday, Fed Chair Jerome Powell said that data shows the economy is strong on a national level. However, he noted that expansion has been uneven in some places.