US Inflation: The year 2023 started in America with a rising inflation rate. The rising cost of housing, gas, and fuel is affecting people’s pockets. According to data released by the US Labor Department on Tuesday, February 14, the inflation rate in January rose to 6.4 percent compared to a year ago. On the other hand, an increase of 0.5 percent has been recorded in the inflation rate on a monthly basis. This rate is higher than the estimates of economists. In a poll conducted among economists by Dow Jones, an increase in an inflation rate of 6.2 percent on an annual basis and 0.4 percent on a monthly basis was predicted.
After the release of the inflation data, there were ups and downs in the US stock market. At the same time, Dow Jones Futures was trading flat. While the dollar index saw a decline.
According to the data, the highest housing-related inflation has increased in the US during the last one month. Apart from this, the increase in the prices of gas and fuel has greatly affected the pockets of the people.
This is the situation when America’s central bank – the Federal Reserve has been trying to stop inflation for the last year. During the last summer in America, the inflation rate went to its highest level in 41 years. In view of this, since March 2022, the Federal Reserve has raised interest rates 8 times so far.
Data from January suggests that the Federal Reserve may continue to raise interest rates for some more time. According to US media reports, the Federal Reserve may hike further by up to 0.50 percent now and then pause for some time to see the impact of its policies.
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