Inflation Comes In Hotter than Expected Despite High Interest Rates
Daily CallerFeb 13
US Inflation Remained Higher Than Expected in January
The Facts
US inflation in January came in hotter than anticipated, as the Consumer Price Index (CPI) rose 0.3% month-over-month and 3.1% since January 2023, according to data released Tuesday by the Bureau of Labor Statistics (BLS).
While US prices increased at a slower rate compared to December, when annual inflation was 3.4%, January’s figure remained higher than the 2.9% expectation forecasted by economists.
The Spin
Republican narrative
Despite the Fed hiking interest rates astronomically, the Biden administration has failed to get inflation under control. The American people can see the president's failures every time they open their wallets. This latest report means the Fed won't be cutting rates, and the US economy will remain shackled by Biden's inflation.
Democratic narrative
It's unrealistic for the economy to beat every monthly forecast. But inflation has been cooling dramatically and that trend continued in January. Under Biden, the economy is better than it was a year ago and is on its way to a full recovery. Bideneconomics continues to be a boon to the American consumer.
Nerd narrative
There's a 38% chance that US core CPI inflation will be above 3% in Dec. 2024, according to the Metaculus prediction community.