USA: Inflation rises unexpectedly

Manager magazine USA: Inflation rises unexpectedly 7 hours • 2 minutes reading time The rise in consumer prices in the USA has accelerated again. Experts now fear that the trend could continue. An interest rate cut demanded by Trump would thus become less likely. As the Labor Department in Washington announced on Wednesday, the so-called CPI index rose unexpectedly from 2.9 percent to 3.0 percent in January. US President Donald Trump (78) blamed his predecessor Joe Biden (82) for the development. He again called for a reduction in key interest rates. Experts had expected a slowdown and an inflation rate of 2.8 percent for January and also assumed lower core inflation. However, this also increased and was at 3.3 percent. Prices for car insurance and used cars, medical care and flights in particular rose sharply month-on-month. Manager magazine summarizes the day for you: The most important business news at a glance in a newsletter. Subscribe now for free. "Biden inflation up!" wrote Trump on his online service Truth Social. During the election campaign, he had made fighting inflation a priority. Analysts, however, warn that Trump's tariffs and possible tax cuts could fuel inflation further. The rise in inflation is also likely to strengthen calls for another interest rate pause at the US Federal Reserve; even though the Fed sees the PCE index and not the CPI as the key indicator of inflation. The PCE value rose to 2.6 percent in December. The central bank's goal is an inflation rate of 2.0 percent. The head of the central bank, Jerome Powell (72), said on Tuesday that he was "in no hurry" to make cuts. Trump wrote on Truth Social: "Interest rates should be lowered." He referred to his trade policy: Falling interest rates would "go hand in hand with the coming tariffs," he explained, without elaborating on this connection.