Economists expect headline CPI rose 0.5% month-over-month in January, a notable jump from figures seen in recent months. New seasonal adjustments released by the BLS on Friday also switched December’s initial reading of a 0.1% monthly drop in headline inflation to an increase of 0.1% in the year’s final month.
While the monthly CPI figure likely rose in January, the annual headline number is projected to come down to 6.2% [from 6.5% the prior month](December CPI: Inflation rises 6.5% over last year), consensus estimates compiled by Bloomberg show.
On an annual basis, economists expect core CPI rose 5.5% over the year, down modestly from the annual 5.7% in December.
“There has been an expectation that [inflation] will go away quickly and painlessly; I don’t think it’s guaranteed that’s the base case,” Powell said last Monday at the Economic Club of D.C. “It will take some time.”
Sorry Mr Market, looks like Powell will be raising interest rates throughout 2023. Good for retiree savers though.