The US releases January consumer price inflation (CPI) data on 12 February, with markets watching closely for signs of persistent inflation that could delay Fed rate cuts.
by Chris Beauchamp
IG Bank
What to expect from January’s CPI report
The upcoming US inflation report is expected to show the headline consumer price index (CPI) increasing by 0.3% month-on-month (MoM), slightly down from December’s 0.4% rise. This would keep the year-over-year (YoY) rate steady at around 2.9%.
Core inflation, which excludes volatile food and energy prices, is forecast to rise by 0.3% MoM.
Recent tariff implementations on steel, aluminium, and Chinese goods could contribute to higher input costs, potentially pressuring prices upward through supply chains. The strong January jobs report, showing unemployment at 4% and robust wage growth, suggests inflation might remain sticky, particularly in services.