Investors around the world anticipate US inflation statistics with bated breath. Indeed, it is a litmus test for the US government and the monetary authorities. Sometimes, US CPIs catch market participants and experts off guard. According to the latest report, the US CPI slowed down to 3.1% in January from a year ago.
Stubborn inflation in the US has been loosening its grip in recent months. The US Labor Department reported that consumer inflation declined by 0.3% to 3.1% in January 2024 in annual terms from 3.4% in December 2023. Energy prices fell by 4.6% on year last month. They sipped by 2% in December. Gasoline prices dropped by 6.4%.
Food prices inched down to 2.6% in January from 2.7% in December. American consumers are certainly pleased with the lower inflation rates of several items. Prices of new cars eased growth to 0.7% from 1% in late 2023. Clothes prices went down to 0.1% from 1%, prices of pharmaceuticals slipped to 3% from 4.7%, and prices of transport services decreased to 9.5% from 9.7%.
To sum up, consumer inflation in the US eannuallybbed away in the first month of 2024 to the November readings. The annual CPI in November 2023 was recorded at 3.1%. In June 2022, the annual CPI surged to 9.1%, the strongest level in the last 4 decades.
