13 February 2024
If you are covering the latest US inflation data, please see the following comment from Lindsay James, investment strategist at Quilter Investors:
“Today’s much anticipated CPI data release has shown a further drop in headline inflation, which has fallen from a 12-month rate of 3.4% in December to 3.1% in January, with falling energy costs a significant factor in this. However, the month-on-month figures signalled a 0.3% rate of CPI, slightly higher than expectations, as both food and shelter continued to drive the bulk of recent price rises.
“Core inflation, which strips out food and energy costs, was also slightly disappointing and showed no change in the 3.9% rate reported in December. This was driven primarily by accelerating inflationary forces in the services sector.
“The Federal Reserve has declared it is closely watching core inflation, so this will likely see any remaining hopes for a March cut evaporating, with a May cut also hanging in the balance."
