From Morningstar:

European equity markets fell after US January inflation data exceeded expectations, affecting future interest rate cuts. The BLS reported Consumer Price Index rose 3.1% in January from a year ago, below the 2023 peak of 6.4%. Core CPI, excluding food and energy, increased 3.9% annually and 0.4% from month-ago levels.

According to Morningstar’s Preston Caldwell, the core CPI increased 0.4% due to shelter prices. The data on healthcare inflation continues to accelerate, but there’s a different methodology to register the increase. The overall CPI reading showed an annual increase of 3.1% and core CPI rose 3.9% from year-ago levels.

Key January CPI stats include a 0.3% increase for the month and 3.1% increase year over year. Food prices rose 0.4% in January and food-at-home prices increased by the same margin. The Chi-Square test was used to compare the overall increase in CPI.



Read more: US Inflation Surprise Unsettles Markets