U.S. Inflation Remains Elevated, Failed Containment Will Likely Lead to More Fed Hikes

Posted on 02/14/2023

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The January consumer price index (CPI) report showed that inflation somewhat cooled, but it remains elevated into 2023. U.S. CPI climbed 6.4% in January 2023 from a year earlier, down from 6.5% in December 2022, according to the U.S. Department of Labor. Annual inflation peaked at 9.1% in June 2022, the highest reading since 1981.

Rising energy and shelter costs continue to drive U.S. inflation. These figures will likely prompt the U.S. Federal Reserve to maintain interest rate hikes.

Keywords: Federal Reserve System.