February 13, 2023 (MLN): The U.S. consumer price index (CPI) for the month of January 2024 rose by 3.1% YoY, as compared to the 3.4% YoY numbers in December, but higher than the market expectations of 2.9%, the latest data issued by the U.S. Bureau of Labor Statistics on Tuesday showed.
On a sequential basis, US CPI rose by 0.3% MoM as compared to 0.2% MoM in the previous month, and exceeding the market expectations of 0.2%.
Moreover, Core CPI rose 3.9% YoY, the same as the previous month, while above the market forecasts of 3.7%
On a sequential basis, Core CPI rose 0.4% MoM as compared to an increase of 0.3% in December and hotter than the market expectations of 0.3%.
CPI came in stronger than expected across the board for monthly, annual and core.
The market sees no chance for a rate cut in March, while the odds for a decrease in May are about 33%.
Meanwhile, a rate cut in June is fully priced in.
The US stock market benchmark S&P 500 futures plunged 1.1% by around 06:46pm PST.
To note, CPI in the last year, January 2023 stood at 6.4% YoY, showing that the Federal Reserve with its fast-paced rate hikes and balance sheet reductions has been successful in curbing inflation to some extent.
However, it still remains above the country's 2% inflation goal.
CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
