The inflation rate in the US drops one tenth, to 6.4% in January

The year-on-year rate of inflation in USA it continued to drop in January, for the seventh consecutive month, and stood at 6.4%, one tenth below that of December, according to data provided this Tuesday by the Bureau of Labor Statistics (BLS, in English).

However, in monthly terms, consumer prices rose half a point, at a time when it is being analyzed whether the increases in interest rates by the Federal Reserve (Fed, in English) have an effect on the desired drop in prices.

The housing index was one of those that contributed the most to the monthly increase in prices, as it rose seven tenths compared to December and accumulates a year-on-year increase of 7.9%.

READ ALSO: Wall Street draws plans for different inflation scenarios

The price of food rose half a point and has risen 10.1% in one year, while energy grew 2% monthly and 8.7% year-on-year.

In more detail, gasoline rose 2.4% after several months of constant declines and accumulates a year-on-year rise of 1.5%. Electricity increased half a point and accumulates a rise of 11.9%, while gas rose 6.7% in January and 26.7% year-on-year.

Core inflation, which measures the rise in consumer prices excluding food and energy prices, the most volatile, rose 0.4% in January and placed its year-on-year rate at 5.6%, the lowest figure since December 2021 , notes the BLS.

As the agency recalls, the inflation rate of 6.4% is the lowest since October 2021.

After knowing the information, the US president, Joe Bidenpointed out in a statement that the figures “reinforce” he “historic progress” achieved and demonstrate “that we are on the right path.”

Now, he added, “we must finish the job”. “Inflation in the United States continues to decline, which is good news for families and businesses across the country (…) but there is still more work to be done as we transition to more constant and stable growth”said the president.

LOOK HERE: Anillo Vial Periférico on the way to go for the direct award to Ferrovial: the process behind

Biden acknowledged that “there could be setbacks along the way”at a key moment in which it is closely analyzed whether the constant increases in interest rates carried out by the Fed are having the desired effect of containing prices.

The last one occurred on February 1, which was the eighth since March of last year, a rise of 0.25 points, which confirmed a slowdown in the increases.

With this rise, less than the previous rises, the rates stood in a range of 4.5% and 4.75%, the highest figure since September 2007.

However, Fed Chairman Jerome Powell insisted at a public event last week that it will be necessary to continue raising interest rates for a while as the process of “disinflation” only just started and “He has a long way to go.”

The president of the regulatory body recalled that the objective of the Fed is to return inflation to 2% and that this will not be immediate.

Although the Fed expects that 2023 “It will be a year of significant fallsPowell noted. “It will take, not just this year, but next year, to go down close to 2%.”

Since it reached its peak in June (9.1%) of 2022, inflation in the United States has relaxed to 6.4% and in January it fell for the seventh consecutive month, although with the aforementioned small drop of one tenth.

Source: EFE