The increased in January in a fourth consecutive month, according to the consumer price index announced today, while analysts were expecting a downward trend.
From January 2024 to January 2025, prices rose by 3%, from 2.9% last month, according to the CPI index announced by.
Analysts estimated that the index would drop to 2.8% annually, according to Consulting Company Marketwatch. They also estimated that structural inflation would be reduced, that is, inflation at which food and energy prices were not calculated, but were denied as it increased by 3.3% on a yearly basis.
On a monthly basis, the prices that rose most were those of cars, used vehicles, recreation, medical care, aircraft tickets and telecommunications.
Such a level reinforces the US Federal Bank (FED) view that it should not rush to reduce its basic interest rates, mainly as there is no evidence of labor market weakening. To determine its monetary policy, the Fed prefers to rely on another inflation indicator, the PCE, announced at the end of each month and also increased (to 2.6% in December). The Fed’s goal is to reduce it to 2%.
The Fed, although independent of its decisions, is under pressure from President Donald Trump’s government to reduce interest rates. Shortly before the CPI index was announced, the US president reiterated in a post on Truth Social that “interest rates must be reduced” quickly, at the same time as the duties he wants to impose on imported products himself. On Tuesday, however, Fed President Jerome Powell told the Senate that he did not consider the reduction of interest rates in the near future, revealing that inflation still remains “somewhat high” above his 2%target.
Trump has never hidden that he wants to have the last word in the monetary policy that the Fed is engraving, as he believes he has better possessed the issue than its members, and in particular from Powell, which he himself appointed in 2018.
In addition, in another post, Trump rejected responsibility for increasing inflation in his predecessor, Joe Biden. “Biden’s inflation is growing!” He wrote characteristically.
