SCHR - Sticky U.S. Inflation Reaffirms Fed Caution On Rate Cuts
2024-02-13 14:23:00 ET
Summary
- The annual rate of headline inflation falls to 3.1% from 3.4% and the core remains at 3.9%.
- Shelter, airline fares, medical care, recreation, and education all saw price increases.
- Today's miss will embolden the Fed to signal it is in no hurry to cut interest rates with the market moving back to only fully pricing three 25 basis points rate cuts this year.
By James Knightley, Chief International Economist
Inflation remains stickier than thought
US January CPI has come in on the high side of expectations, with headline up 0.3% MoM versus the 0.2% consensus, while core rose 0.4% MoM versus the 0.3% market expectations. This means the annual rate of headline inflation falls to 3.1% from 3.4% and the core remains at 3.9%....
Sticky U.S. Inflation Reaffirms Fed Caution On Rate Cuts