Inflation fetches the speed after Trump promised to ‘quickly’ reduce prices | US economy

Inflation crossed higher in the United States in January when Donald Trump returned to the office with a promise to quickly reduce prices.

The consumer price index increased by 3% last month – slightly from December’s annual reading of 2.9%.

The closely monitored index increased 0.5% in a month-to-month basis, stronger than 0.3% prognosis of economists.

The so -called “core” index, which stripes volatile foods and energy prices, increased from an annual rate of 3.2% in December to 3.3% in January.

Wednesday’s data seemed to rattle investors where Wall Street came under pressure under trading before the market. The S&P 500 and Dow Jones Industrial Average were each down with approx. 1%. The 10-year US Treasury-a key barometer for US financial expectations-roasting to approx. 4,629%.

Inflation increased over large parts of the world three years ago as the pandemic continued to distort the global economy and supply chains. It peaked with 9.1% in the United States, its highest level in a generation.

While price growth has since dropped dramatically, consumer prices have been high – challenging perceptions of an economy that has proven to be remarkably resistant.

The latest inflation data will increase speculation about how fast decision makers in the US Federal Reserve will reduce interest rates as they raised aggressively in an attempt to cool the world’s largest economy and reduce price growth.

Minutes before Wednesday’s report was released, Trump declared that the rates “should be lowered” by bold, a step he said “would go hand in hand” with his plan to impose steep tariffs on overseas imports. “Let’s Rock and Roll, America !!!,” the president wrote about truth social, his social network.

Many economists have warned that Trump’s customs strategy risks aggravating inflation.

When millions of Americans struggled with the cost of living last year, Trump promised to intervene in the campaign attempt. “The prices come down,” declared During a speech. “You just see – they come down and they come down quickly.”

Since his election victory last November, however, Trump has seemed to soften his promise. “I want to bring them down,” told Time Magazine of prices in December. “It’s hard to bring things down when they’re up. You know it’s very difficult. “

On the question of Fox News, when families will be able to “feel prices going down” this weekend, the president changed the subject and claimed other countries are taking advantage of the United States.