Inflation Continues to Cool in the US

The closely watched consumer-price index is out, and the new numbers for January show that inflation continues to cool on an annual basis—though not by as much as analysts expected.

• The rise: Consumer prices rose 0.5% in January, which translates to an annual inflation rate of 6.4%, reports CNBC. Analysts expected lower numbers: 0.4% and 6.2%. Still, the annual figure is lower than the 6.5% registered in December, which marks the seventh straight monthly slowdown, per the AP.
• Context: The rate hit a four-decade high of 9.1% in June, notes the Wall Street Journal. The current rate remains well above the Fed's annual target of 2%.
• Core prices: The so-called core CPI, which excludes volatile food and energy prices, rose 0.4% for the month and 5.6% for the year, also above expectations of 0.3% and 5.5%.

• Markets: Investors didn't seem phased initially. Dow futures were up about 80 points just before the report came out, and they declined modestly upon its release. Last week, Fed chief Jerome Powell made clear that taming inflation will take a while. The central bank has seen progress, he said, but “this process is likely to take quite a bit of time. It’s not going to be, we don’t think, smooth, it’s probably going to be bumpy.”

(More inflation stories.)