Inflation increased less in America in January compared to December, inflation rate was 6.4 percent

US Inflation Data: On the front of inflation, good news has come for America, which can provide relief to the financial markets of the whole world. Inflation has declined in the US for the month of January. The US Consumer Price Index data was released, according to which the inflation rate has come down to 6.4 percent in January from 6.5 percent in December. According to the Bureau of Labor statistics, new methods have been used to measure the inflation rate in America.

The inflation rate was 6.5 percent in December 2022, which has come down to 6.4 percent in January 2023. This is very less than October 2021 when food cost was 10.1 percent, which was 8.7 percent inflation of energy prices. Last year, in June 2022, the inflation rate had reached 9.1 percent, since then there has been a continuous decline in the inflation rate in America. The inflation rate in America may have come down to 6.4 per cent, but it is three times higher than the Federal Reserve’s target of 2 per cent. However, strong figures have come out on the employment front in the month of January in America. 5,17,000 new jobs have been added in the month of January, so the unemployment rate has come down to 3.4 percent, which is the lowest in 53 years.

Due to the high inflation rate in America, the US Central Bank Federal Reserve was continuously making the loans costlier there. Due to which investors have been selling in the stock markets around the world including American. And taking out investments from these countries.

However, despite the fall in the inflation rate, there is no hope of getting relief from the expensive debt in America. On February 1, the Fed Reserve has increased the interest rates by a quarter percent and this process is going to continue in the coming days. The inflation rate in America had reached the highest level of 40 years, after which the Central Bank Federal Reserve is continuously making the loan costlier. However, economists believe that the US may face a partial recession this year if the Federal Reserve continues to raise interest rates to combat inflation. The Federal Reserve wants to reduce people’s purchasing power through expensive loans so that inflation can be controlled. Because due to cheap loans, people are shopping for houses and cars along with shopping for expensive things.

read this also

Income Tax: Tremendous jump in the number of people earning Rs 10 lakh annually, such taxpayers increased by 260% after 2015-16