US Inflation Data: In the new year 2024, those who had hopes of the Federal Reserve reducing interest rates after the reduction in interest rates in America, their hopes have been shocked. Inflation rate has increased again in America at the end of 2023. According to government data, the Consumer Price Index has seen an increase of 3.4 percent till December 2023, which is the highest in the last three months.
The increase in inflation rate in America has dealt a blow to the hopes of reducing interest rates by March 2024. Economists had expected inflation to increase at the rate of 3.2 percent, which was 3.1 percent in November 2023. Coal inflation rate has also been high. After this data of increase in inflation rate, the American stock market is trading with a big decline. Dow Jones is down 192 points and is trading at 37,502. However, there is a slight rise in Nasdaq. S&P 500 is trading with a decline of 0.53 percent.
Core inflation, which excludes food and energy prices, has increased by 3.9 percent on an annual basis till December, although it is lower than 4 percent in November. Economists had expected it to grow at a rate of 3.8 percent. There has been a jump of 0.3% in core inflation compared to a month ago.
According to the data of Bureau of Labor Statistics, accommodation, electricity and motor insurance have become expensive during this period. Used car prices have increased for the second consecutive month. Earlier it was expected that interest rates could be cut thrice in 2024. At present, there seems to be doubt over the cut in interest rates.
On one hand, there has been a surge in inflation rate in America, while on January 12, 2024, retail inflation rate figures for the month of December will also be released in India.
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