Introduction
The U.S. Bureau of Labor Statistics released the January 2025 Consumer Price Index (CPI) and Producer Price Index (PPI) figures the week of February 9th with both coming in hotter than expected.
CPI
The CPI was up 3% year-over-year, far above the Federal Reserve Bank’s 2% target. What gives many pause for concern is the CPI in January was up for the fifth month in a row. The CPI registered 2.4% growth in September, 2.6% in October, 2.7% in November, and was up 2.9% in December. Not only was the January figure higher than most economists expected on a year-over-year basis, it was up .5% month over month, which if extrapolated over the next 12 months would result in a 6% annual inflation rate.
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