What Does January Inflation Data Mean for Interest Rates?
What Does January Inflation Data Mean for Interest Rates? |
| The Consumer Price Index, the broadest measure of consumer prices, rose more than expected in January.
Why it matters: Inflation remains above the Federal Reserve’s 2% target rate. Be smart: The Federal Reserve looks closely at core prices, which strip out volatile elements like food and energy. That metric rose 3.9% on an annual basis. Big picture: January’s data likely means the Fed will continue holding interest rates steady in the coming months as it allows more time for previous rate increases to lower inflation. |