The U.S. Department of Labor announced Thursday that inflation in the United States rose to 7.5 percent in January. This was higher than expected, especially now that the US Federal Reserve has announced that it will raise interest rates next month.
Inflation in December was 7 percent, the lowest level in 40 years. Last month, the increase in life expectancy was further accelerated. Economists had forecast an average of 7.3 percent in January.
On a monthly basis, consumer goods rose 0.6 percent. Food, energy and housing prices rose. Economists expect a 0.4 percent increase.
Major inflation, excluding volatile food and energy prices, was 6 percent.
High inflation is not good news for President Joe Biden because Americans feel their purchasing power is being undermined. The recent pay rise in many sectors – to attract employees after the ‘great resignation’ – is also offset by this.
The Federal Reserve is likely to meet on March 15-16, where it is expected to raise key interest rates. The pressure to intervene is even greater now.