Inflation in the United States cooled in January, reaching its slowest pace since May, according to the Department of Labor. The consumer price index rose by 2.4% over the 12 months to January, down from 2.7% the prior month, driven by falling prices for energy and used cars, as reported by BBC Business. This positive economic news comes as the January CPI report offered encouraging signs for consumers and the economy, with the index falling below Wall Street expectations, as noted by CBS News.
The cooling inflation could provide financial relief for budget-strapped consumers, experts said. Inflation averaged a 2.6% annualized rate from November through January, compared with nearly 2.9% from July through September, according to CBS News. Heather Long, chief economist at Navy Federal Credit Union, stated that "Inflation fell to the lowest level since May, and key items such as food, gas and rent are cooling off," providing "much-needed relief for middle-class and moderate-income families."
The retreat in inflation could add fuel to arguments by US President Donald Trump and others that the central bank is in a position to cut interest rates without stoking a new flare-up in prices, BBC Business reported. However, some analysts have warned that further progress toward the Federal Reserve's 2% target could stall in the months ahead if companies start to pass on the costs of tariffs more fully to consumers or labor shortages push up prices.
In other news, the center-right Bangladesh Nationalist Party (BNP) secured a landslide majority in parliament, 18 months after mass protests ousted the country's longest-serving prime minister Sheikh Hasina, according to BBC World. BNP leader Tarique Rahman is set to be the next prime minister and faces huge challenges in getting the economy back on track.
Meanwhile, US President Donald Trump announced the reversal of the so-called endangerment finding, a key Obama-era scientific ruling that underpins much of US environmental legislation, as reported by BBC World. As a result, experts are predicting various environmental and economic impacts, though the decision by the US Environmental Protection Agency (EPA) is expected to be challenged in the courts from environmental groups. The change means looser greenhouse gas regulation for the US auto industry.
Discussion
AI Experts & Community
Be the first to comment