CPI Report: Inflation Rose Unexpectedly in January
Published On Feb 12, 2025, 8:38 AM
U.S. inflation unexpectedly rose to 3.0% in January 2025, driven by higher food and energy prices, complicating the Federal Reserve's decision-making regarding interest rate cuts. The Consumer Price Index increased by 0.5% since December, marking the fastest rise since August 2023. Core inflation, which excludes food and energy, rose by 3.3% year-over-year, also above economists' expectations. This mixed inflation report emphasizes the Federal Reserve's continuing struggle with inflation, despite it having decreased from a peak of over 9% in 2022.
Stock Forecasts
XLF
Negative
Given the strong inflation data, it is likely that the Federal Reserve will maintain a cautious approach regarding interest rate cuts, potentially leading to a stronger dollar and impacting rate-sensitive sectors negatively.
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