CPI January 2025:

Inflation became more than expected in January, which provided additional incentive for the Federal Reserve to keep the line on interest rates.

The Consumer Price Index, a broad measure of costs in goods and services throughout the US economy, accelerated a seasonal adjusted 0.5% for the month, seting the annual inflation of 3%, reported the Bureau of Labor Statistics on Wednesday. They were higher than the respective Dow Jones stimates for 0.3% and 2.9%.

Excluded volatile foods and energy prices rose 0.4% in the month and set the 12-month inflation of 3.3%. It compared to respective estimates for 0.3% and 3.1%.

Ly costs continued to be a problem for inflation, increasing 0.4% over the month and accounting for approx. 30% of the entire increase, BLS said.

Food prices burst 0.4%, pushed by a 15.2% increase in egg prices related to continuous problems with avian bird flu, which has forced farmers to destroy millions of chickens. The Bureau said it was the biggest increase in egg prices since June 2015, and it was responsible for about two -thirds of the increase in food at home prices. Egg prices have risen 53% in the past year.

The markets tumbled after the news, with futures tied to Dow Jones Industrial Average, sliding more than 400 points, while the bond yield is scaled sharply higher.

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