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The inflation rate in January likely saw a modest increase of 29%, marking the lowest level since March 2021. Experts at the Federal Reserve are keeping a close eye on inflation data to determine the appropriate timing and extent of reducing the Fed’s interest rate. A decrease in inflation could bring relief to households by curbing price hikes and making borrowing costs for different loans more affordable.The Consumer Price Index likely increased by 29% in the twelve months leading up to January, marking the lowest inflation rate since March 2021. Federal Reserve officials are carefully observing inflation figures in order to determine the timing and extent of any adjustments to the Fed’s interest rate. Should inflation ease, households may see advantages such as decreased price surges and reduced borrowing expenses for different types of loans.
Economists surveyed by Dow Jones Newswires and the Wall Street Journal had forecasted a CPI of 3.1%.
Core inflation, excluding food and energy prices, dropped to a 3.8% annual rate from 3.9% in January, hitting its lowest level since May 2021. This decrease was slightly less than the anticipated reduction to 3.7%. The Federal Reserve closely monitors core inflation as it gives a clearer indication of future price trends, despite not accounting for all essential household expenses.
