Annual inflation in the United States cooled last month, but not as much as expected, the latest sign that the pandemic-fueled price surge is only gradually and fitfully coming under control, per the AP.
- The numbers: Tuesday's report from the Labor Department showed that the consumer price index rose 0.3% from December to January. Compared with a year ago, prices are up 3.1%. Economists expected figures of 0.2% and 2.9%, respectively, reports the Wall Street Journal. The latter, getting under 3%, would have been a welcome milestone.
- Markets: Wall Street is not happy with the higher-than-expected numbers: Dow futures fell more than 300 points when the report came out, notes CNBC.
- Context: The annual 3.1% figure is less than the 3.4% in December and far below the 9.1% inflation peak in mid-2022. Yet the latest reading is still well above the Federal Reserve's 2% target level at a time when public frustration with inflation has become a pivotal issue in President Biden's bid for re-election.