The new year brought hope that a long, painful period of high inflation was finally ending, but the U.S. economy might not be out of the woods just yet. The January Consumer Price Index (CPI) report came in somewhat higher than expected, indicating a potentially longer course in the Fed’s fight against rising prices.
The CPI increased 0.5% over the prior month in January and was 6.4% up year-over-year, while economists projected 0.4% and 6.2%, respectively. To this, Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office, said, “It is a reminder that while inflation has peaked it could be a while before we see it moderate to normal levels.”
