Inflation surges 7.5% on an annual basis, even more than expected and highest since 1982
The monthly CPI rates also came in hotter than expected, with headline and core CPI both rising 0.6%, compared with the estimates for a 0.4% increase by both measures.
"With another surprise jump in inflation in January, markets continue to be concerned about an aggressive Fed," said Barry Gilbert, asset allocation strategist at LPL Financial."While things may start getting better from here, market anxiety about potential Fed overtightening won't go away until there are clear signs inflation is coming under control."The inflation numbers come at a crossroads for the U.S.
Vehicle costs, which have been one of the biggest inflation contributors since they began surging higher in the spring of 2021, were flat for new models and up 1.5% for used cars and trucks in January. The two categories have posted respective increases of 12.2% and 40.5% over the past 12 months. "While we still expect more favorable base effects and a partial easing of supply shortages to push core inflation lower this year, this suggests it will remain well above the Fed's target for some time," he added.
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