West Virginia (CNN)- Inflation climbed again in January, hitting 3 percent for the first time since June 2024.
According to data released Wednesday, consumer prices rose by half a percent from December to January, paving the way for the Federal Reserve to cut rates next month after a yearslong battle with inflation that sent rates to a 23-year high.
Economists expected a rise of three-tenths of a percent and predicted the annual inflation rate would be two-point-nine percent.
The cost of goods and services has slowed significantly since hitting a 40-year high in 20-22, following COVID-19.
However, prices are rising faster than in the decade before the pandemic.
America’s economy is showing signs of stress, and now that inflation appears under control, the Fed can reduce borrowing costs to try to boost job growth again.
Consumer prices rose 2.9% for the 12 months ended in July, slowing from June’s 3% annual gain, according to the Bureau of Labor Statistics’ latest CPI report released Wednesday.
Prices rose 0.2% after posting a 0.1% decline the month before.
According to Fact Set consensus estimates, economists were expecting a 0.2% monthly increase and an annual rise of 3%.
