CPI data

A new report on inflation is due this morning. Economists surveyed by Bloomberg forecast that the annual rate of price increases will slow to 6.2% in ...

The next CPI report is due on March 14.] [What is the current inflation rate?] [The current rate of inflation is 6.5% on annual basis. [Causes of inflation ] [A variety of factors are contributing to the high level of inflation Americans have been experiencing for over a year. It measures changes in how much the average urban American consumer pays across the board for goods and services over a given period of time.] [Core CPI ] [Core CPI is a measure of the change in consumer prices excluding energy and food which are generally the most volatile components of CPI. [Fed's latest decision](https://www.usatoday.com/story/money/economy/2023/02/01/federal-reserve-interest-rate-decision-meeting-live-updates/11135680002/), anticipating that the central bank was closer to pausing rate hikes. Economists expect core CPI for January to drop to 5.5% on an annual basis from 5.7% in December. These revisions resulted from annual adjustments the BLS makes to account for seasonal variation in CPI data. These adjustments correct for price changes that correspond to seasonal demand. It also found that prices rose by 0.2% in November versus the previously reported 0.1% increase. [Dow futures] [Futures trading for the Dow Jones Industrial Average are moving slightly higher leading up to the report's release. Economists surveyed by Bloomberg forecast that the annual rate of price increases will slow to 6.2% in January following a decline to 6.5% in December. [Fed 2023 schedule: ] [Here's when the Fed will meet again](https://www.usatoday.com/story/money/2022/12/13/federal-reserve-2023-meeting-schedule/10887436002/) [Fed rate hike ] [The big question is what will this CPI report mean for the Fed. A new report on inflation is due this morning.

Consumer Price Index data released on Tuesday showed that price increases picked up briskly on a monthly basis last month. That was true across both key ...

The data for January showed price increases picking up again on a monthly basis, although the year-over-year numbers continued to show some slowdown in inflation. “Markets are vulnerable in the short-run for that reason.” The prospect of a continued drop in the pace of price rises had raised hopes that the Federal Reserve would soon end its campaign of raising interest rates, which tends to lower inflation but also raise borrowing costs for consumers and companies. Having risen ahead of the data release, futures on the S&P 500, which allow investors to bet on the index before markets officially open, initially moved sharply lower before recovering to trade roughly flat for the day. [its profits fell](https://www.bloomberg.com/news/articles/2023-02-06/tyson-shares-slump-with-falling-meat-prices-hitting-profits?cmpid=BBD021023_TRADE&utm_medium=email&utm_source=newsletter&utm_term=230210&utm_campaign=trade#xj4y7vzkg) in the first quarter as consumers cut back on purchasing its products, especially more expensive items like beef and pork. The average price of large eggs dropped from more than $5 a carton earlier this year to less than $3 in February, the department said. A price index for meats, poultry, fish and eggs increased in January, as did another for cereals and bakery products. Much of the inflation slowdown in recent months has come from a moderation in price increases for goods and commodities. Food prices grew 0.5 over the month, ticking up slightly compared with an increase of 0.4 percent in December. That trend continued in January, with services prices excluding energy continuing to increase rapidly, partly owing to the jump in rental and other housing costs. Goods, including used cars and apparel for women, dropped in price on a monthly basis, but even the slowdown in physical products was less pronounced than it had previously had been. The price index was up 6.4 percent in January compared with a year earlier.

U.S. consumer prices increased from the prior month in January but met expectations, while the underlying trend showed inflation is slowing, likely keeping ...

I think what you're going to continue to see and hear is the market to be unsure about what the Fed does next. "So I don't think any of this necessarily in and of itself changes expectations. “I don’t think (this report) moves the needle for the Fed, and I suspect they’re taking a hard look at the data. "Consensus is now in line with the Fed. "I think (this report) justifies the rise in the two-year yields over the last several weeks and a bit of the resetting in the bond market. So, I think in a lot of ways it’s still very easy to make the case that it looks like inflation will continue to soften as the year progresses and I’m sure this comes as an enormous source of relief at the Fed. So, I think that comes as a big source of relief on some level and in the context of shelter has been doing a lot of the damage from an inflation perspective, particularly over recent months. "I think the bond market is right on the short end that two hikes in the next couple of months are warranted. "The shelter component continues to be such a huge driver of inflation … That said, the market has already re-priced in favor of more tightening from the Fed since the release of Jan payrolls.” “The much longed for, and in several places expected, peak in inflation has been postponed again. The big picture is that the inflation data clearly show that the market is too optimistic about inflation dropping enough this year to allow the Fed to start cutting rates.

A hotter-than-expected US inflation rate stoked worries of an even higher Federal Reserve for a longer period of time, causing US stock index futures to ...

The US annual inflation rate decreased from 6.5% in December to 6.4% in January 2023, which was less than market expectations of 6.2%. Markets have rallied on the back of cooling inflation and the hope that the Fed will turn dovish soon, with the S&P 500 up nearly 14% from its October lows. Earlier, the December estimated CPI was revised to show that prices increased rather than decreased during the month, and the University of Michigan’s Consumer Sentiment report revealed that people are becoming increasingly concerned about inflation. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.5 percent in January on a seasonally adjusted basis, after increasing 0.1 percent in December, the U.S. For the first time, a new method to compute US CPI was used by the Bureau of Labor Statistics. A hotter-than-expected US inflation rate stoked worries of an even higher Federal Reserve for a longer period of time, causing US stock index futures to temporarily cross into negative territory on Tuesday.

Traders work on the floor of the New York Stock Exchange. NYSE. Stocks wavered Tuesday after the January consumer price index report showed that inflation grew ...

[Palantir](/quotes/PLTR/)— Shares jumped 18% on the back of [quarterly results](https://www.cnbc.com/2023/02/13/palantir-q4-earnings-2022.html)that came in ahead of analysts' expectations, according to Refinitiv. CNBC Pro subscribers can see what to expect for the entire week [here](https://www.cnbc.com/2023/02/10/investors-will-have-their-eyes-on-the-consumer-price-index-in-the-week-ahead.html). [Arista Networks](/quotes/ANET/)— The cloud stock advanced less than 1% after reporting earnings and revenue that came in ahead of the consensus estimate set by analysts polled by Refinitiv. [Coca-Cola](/quotes/KO/) beat revenue expectations for the fourth quarter. [Palantir](/quotes/PLTR/) — Shares of the software company surged 18% in extended trading after Palantir reported it made a profit in the fourth quarter, the first GAAP profit in the company's history. "Instead, it reflects a view that the current valuation is difficult to reconcile with the quality of the underlying assets and cash flow power through a cycle." "That of course is how that market feels today and can always change but for now, only the December 2023/January 2024 fed funds futures contract does a rate below 5% show up and barely," he added. [The S&P 500](/quotes/.SPX/) slipped 0.52%, and the [Nasdaq Composite](/quotes/.IXIC/) ticked 0.80% lower. [Restaurant Brands](/quotes/QSR/) — Shares of the Burger King parent dipped 3% after it reported 72 cents in earnings per share for the fourth quarter, two cents below Wall Street estimates, according to FactSet. That was [slightly higher](#107194186-IMfXLRo8U) than economist estimates of the basket of goods and services rising 0.4% on the month and 6.2% on the year, according to a survey by Dow Jones. "That could be the recipe for a soft landing, but it remains to be seen when the Fed will shift away from rate hikes and if the labor market will lose its resiliency." Before the number was released, JPMorgan's trading desk predicted that an annual increase of 6.4% to 6.5% would trigger an S&P 500 loss of about 1.5% on Tuesday.

The consumer price index was expected to increase 0.4% in January from a month ago and 6.2% on an annual basis, according to Dow Jones.

Markets expect the Fed over its next two meetings in March and May to raise its overnight borrowing rate another half a percentage point from its current target range of 4.5%-4.75%. January's CPI report will take some time to analyze, as the BLS changed its methodology in how it reports the index. That number rose 0.2% in January and was up 4% from a year ago. The Fed also changed how it computes an important component called owners' equivalent rent, a measure of how much property owners could get if they rented. "If retail sales also show strength tomorrow, the Fed may have to increase their funds rate target to 5.5% in order to tame inflation." There's widespread belief that the economy could tip into at least a shallow recession later this year or early in 2023. The component accounts for more than one-third of the index and rose 0.7% on the month and was up 7.9% from a year ago. "Inflation is easing but the path to lower inflation will not likely be smooth," said Jeffrey Roach, chief economist at LPL Financial. That has come despite Federal Reserve efforts to quell the problem. The CPI had risen 0.1% in December. Rising prices meant a loss in real pay for workers. economy in danger of slipping into recession this year.