US Consumer Prices Exceeded The Prognosis

Forex News

US Consumer Price Index has exceeded the forecast in January as the apparel costs hit the maximum of almost 30 years (+1.7%). That is, CPI increased 0.5% when the projection was at 0.3%. Excluding food and energy, core CPI rose 0.3%, comparing to the forecast of 0.2% and 1.8% higher comparing to 2017. The three-month annualized gain hit the 7-year maximum of 2.9%. Rents and owners’ equivalent rent grew 0.3%, medical care prices surged 0.4% and motor vehicle prices were up 1.3%, marking the 17-year maximum.

Meanwhile, retail sales declined 0.3% in January from December, the largest decline in almost a year. Wireless-phone service prices dropped 0.2%. Used-vehicle prices lifted 0.4%. The index for new vehicle costs was down 0.1%. The price of airfares tumbled 0.6%. Price of lodging away from home reduced 2%. Average hourly earnings, adjusted for inflation, grew 0.8% comparing to 2017.

This whole data added to investors’ worries that Fed will hike an interest rate in a faster pace.