'US Inflation at 40-Year High to Rise Further... February Peak Expected'

[Asia Economy New York=Special Correspondent Joselgina] The US consumer price index, which recorded the highest level in about 40 years, is expected to continue the '7% range' in January this year.

According to Bloomberg Economics on the 6th (local time), the US Consumer Price Index (CPI) for January, to be released on the 10th, is estimated to surge 7.3% compared to the same month last year. This is the largest increase since February 1982. It also exceeds the 7.0% recorded in December last year, making two consecutive months in the 7% range highly likely.

The core CPI, which excludes the volatile energy and food sectors, is expected to rise 5.9% compared to the same month last year. This is also higher than the 5.5% in December last year. Jack Eblin, Chief Investment Officer (CIO) of Cresset Asset Management, expressed concern, saying, "It will be a difficult figure to digest."

Accordingly, there are expectations that the Federal Reserve (Fed), the US central bank, may accelerate its tightening measures such as interest rate hikes. The market anticipates that the Fed will raise interest rates at least 4 to 5 times starting from March this year.

Recent wage increases in the US and rising international oil prices are factors that could increase inflationary pressure going forward. The US nonfarm payrolls for January, released last week, were four times the market forecast, and the average hourly wage rose 5.7% compared to a year ago. The benchmark for international oil prices, West Texas Intermediate (WTI), surpassed $90 per barrel, reaching the highest level since September 2014.

Bloomberg Economics stated, "Energy and food prices are still on the rise," and predicted that "inflation will pass its peak in February."

This content was produced with the assistance of AI translation services.