January Inflation Could Go Up or Down Equally

Feb 14, 2023

January Inflation Could Go Up or Down Equally

According to economists, consumer price growth slowed to its weakest annual rate in more than a year in January, despite recent increases in fuel and grocery costs, which could mean that the monthly inflation rate is rising again.

Economists forecast that consumer price growth will fall to an annualized 6.2 percent in January, down from 6.5 percent in December, marking the sixth consecutive month of lower annual inflation. The closely watched consumer price index has been falling slowly since June when annual price growth peaked at more than 9 percent, and if the data remains flat, it will reach its lowest level since October 2021.

However, the month-to-month changes have been more variable, and prices rose between December and January, as expected. FactSet polled economists estimate the CPI to rise 0.5% last month, up from 0.1% the previous month.

With the volatile food and energy sectors excluded, the so-called core CPI is estimated to have risen 0.4% in January. That would match December's rate and raise the annual rate of core CPI increase to 5.7%, up from 5.5% the previous month.

The Federal Reserve will be primarily concerned with the specific categories in which inflation remains high. In recent months, the central bank has concentrated mostly on what some economists refer to as supercore services, or service sectors excluding energy and rent.

https://liquidity-provider.com/app/uploads/2023/02/unnamed-13.png

In this regard, the January report may be mixed. Analysts at Bank of America expect health services to decline, mainly at the expense of health insurance. However, they estimate that transportation services will rise from a 0.2% monthly gain in December to 0.7% in January.

Meanwhile, the housing category has the potential to rise further in January due to increased rental spending. According to economists, rental costs will potentially decline in the coming months as private sector data that tracks the category in real time has already shown falling prices for new leases. However, economists say this is not reflected in last month's statistics.

According to Fed officials, core goods prices have been declining in recent months, which has contributed to driving down the core rate of inflation overall.

However, other experts believe that used automobile prices would rise in January, limiting the degree of deflation witnessed in core goods overall.

One issue for the future is whether core goods prices will begin to rise before housing prices decrease.

This might imply that the headline rate of inflation begins to climb again, reversing the current trend.

"We suspect inflation could turn out to be a bumpier ride over the coming months if the disinflation taking place in the goods components is easing before the expected disinflationary impulse from the shelter and core services components starts to take effect," says Richard de Chazal, a macroeconomics analyst with William Blair equity research. The Labor Department will release the CPI data at 8:30 a.m.

Subscribe Our Newsletter

Stock Market News Live Updates: S&P 500 Closes At All-Time High Jump-Starting The Santa Claus Rally
Stock Market News Live Updates: S&P 500 Closes At All-Time High Jump-Starting The Santa Claus Rally

The index surpassed its previous high for the second trading day in a row, as markets surged ahead of the last week of the year. All three main US indices rose, signaling equity market bulls that the Santa Claus Rally continues.

Stocks
6 Bank Stocks for 2022 With Diversified Revenue Streams and Strong Management
6 Bank Stocks for 2022 With Diversified Revenue Streams and Strong Management

"Regardless of industry, economic, or other conditions, the two banks' management teams will find a way to create greater long-term returns for investors," Cooper told Barron's.

Stocks
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Hazem

What is an Airdrop in Crypto, and How Do You Receive Free Tokens?
Crypto airdrops are becoming increasingly popular for new projects to promote themselves and for investors to make quick profits. How do all these work?

discover
Investment Priorities Plan - Definition

Alexander

What Is an Investment Priorities Plan?

In this article, we will delve into the investment priorities plan meaning, the importance of IPPs, how they are used, and how one can create such a plan for their own business.

Investing
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Сonstantine

    Best Crypto to Buy Now: Guide for Investors

    Best Crypto To Buy Now

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.