The central bank hiked interest rates by 450 basis points over the last year to combat soaring inflation. Interest rates have now risen to their highest level since 2007. Furthermore, a higher-than-expected January inflation report indicates that the Federal Reserve’s path to sought price stability is likely to be bumpy.
The Consumer Price Index (CPI) rose 0.5% in January, compared to 0.1% in December. Over the last 12 months, inflation increased by 6.4%. Both numbers exceeded economists’ expectations of 0.4% and 6.2% respective increases.
