Recent U.S. inflation data has been largely uncorrected, relieving markets

Mondo Health Updated on 2024-02-09

**: Global Market Broadcast.

According to the latest data released on Friday, after annual revisions, inflation in the United States ended last year was about the same as in the preliminary report.

Data from the U.S. Bureau of Labor Statistics shows that in the last three months of 2023, consumers** excluding food and energy rose by 33%, which is in line with the previously announced value. The revision to the headline data was also minimal, but the month-on-month increase in December last year was from 03% revised down to 02%。

The Fed** is seeking more evidence that price pressures are continuing to subside before it starts cutting rates. Inflation slowed rapidly in the second half of last year, and policymakers expressed doubts about whether this trend could be sustained.

After the release of the data, U.S. stock indexes strengthened, and U.S. bonds trended.

After last year's revised data surprised policymakers and investors, this year's data correction has received unusually high attention. At the time, inflation was on a steady downward trajectory, with subsequent revisions erasing some of the progress.

Inflation data for January will be released next Tuesday, which is expected to show that the core index is **0 for the third consecutive month3%, representing a slight uptick in the three-month annualized rate.

The U.S. Bureau of Labor Statistics regularly adjusts monthly CPI data to exclude seasonal factors, such as model changes and holiday shopping. At the beginning of each year, DSEC re-evaluates these factors to keep up with the latest trends and therefore makes annual revisions.

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