US Core Rises 0.4%, Chances of Fed Rate Cut Reduced

The Consumer Price Index (CPI) released by the US Bureau of Labor Statistics (BLS), the United States (US) labor statistics bureau, today showed that the core CPI in January rose 0.4% and exceeded the government's target. The increase in the core CPI was triggered by car insurance, airline tickets, and increases in prescription drug costs.

In the BLS report, the core CPI rose to its highest level most often in March, which stagnated around 0.4% and the worst in December 2023 at 0.5%.

The rising US CPI also has the potential to reduce the chances of the Federal Reserve (The Fed) cutting interest rates this year and shows that US inflation has increased since early 2025.

Meanwhile, the monthly CPI increased in January and was the highest since August 2023, with increases by various household expenses such as groceries and energy, as well as housing costs.

Not only that, US inflation has increased quite high every January, this is in line with the company's strategy to increase the prices and costs of their products at the beginning of each year.