US inflation continues to rise

TEHRAN (Tasnim) – US consumer prices rose 0.6% month-on-month in January following a 0.2% rise in December, according to a report released by the Department of Commerce on Friday.

– World News –

On an annual basis, prices were up 5.4% from 5.3% in December.

Meanwhile, the Personal Consumption Expenditure Price Index, a measure of inflation recommended by the Federal Reserve, rose 5.4% year-on-year. Core inflation, which excludes volatile food and energy prices, rose 4.7% year-on-year.

The January price reading beat forecasters’ expectations and dashed hopes that the Fed might choose to halt its rate hike campaign. Since March last year, regulators have introduced eight major rate hikes to keep prices down.

A Federal Reserve official this week suggested that persistently high inflation was due to a complex combination of circumstances and was unlikely to slow in the near term.

As quoted by Bloomberg, Gov. Philip Jefferson said in a panel remark, “The inflationary forces currently affecting the U.S. economy defy simple, parsimonious explanations. It shows that the elements are intricately mixed.

“Continued imbalances in labor demand and supply, combined with the bulk of labor costs in the service sector, suggest that high inflation may only come down slowly.”