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    U.S. and India Inflation Rates Moderate Slightly in January


    The U.S. inflation rate moderated slightly in January, coming in at 6.4% according to the latest data from the Bureau of Labor Statistics (BLS) released on Tuesday.[0] This was down from the 6.5% reading in December, but still much higher than the 2.1% average in the three years before the pandemic. Core inflation, which strips out volatile food and energy prices, was at 5.6% in the year ending in January – the smallest increase since December 2021.[1]

    According to the CPI report, prices for used cars decreased by 1.9%, while prices for new cars increased by 0.2%.[2] The Bureau of Labor Statistics (BLS) reported that housing prices were the primary factor in the monthly increase in overall inflation.[3] In January, the shelter index rose by 7.9% compared to the same month in the previous year.[4] The prices had an increase of 0.5% compared to the previous month, ending a period of three months of improvement that started after the December report, which showed the largest decrease in monthly inflation since April 2020 when the pandemic was at its peak.[1]

    The annual rate of inflation remained high despite moderating slightly from December's reading.[5] The January 2023 Survey of Consumer Expectations conducted by the New York Fed revealed that the median inflation expectations for the year ahead remained unchanged at 5%.[6] Prices for food at home rose a more moderate 0.4% on the month.[5]

    In less than twelve months, the Federal Reserve has taken decisive action by increasing borrowing rates to a target range of 4.5% to 4.75%. This is part of their effort to curb surging prices.[7] If inflation remains at a rate higher than the Federal Reserve's goal of 2%, such as between 4-5%, the Fed may have to increase rates higher than expected and maintain that level for a considerable time.[5]

    India’s headline retail inflation is also likely to have returned to 6-percent plus territory in January from December's one-year low of 5.72 percent. In January 2021, India's retail inflation rate rose back to 6.52%, after staying below 6% for two consecutive months. Consumer food prices rose to 5.94%, compared to 4.2% in December 2022, and prices of goods and services across the board began to increase.

    0. “US CPI climbed 6.4% in January as inflation is still high” Business Insider, 14 Feb. 2023,

    1. “Inflation Fell To 6.4% In January—But Is Still Worse Than Economists Expected As Rent, Food And Gas Prices Keep Rising” Forbes, 14 Feb. 2023,

    2. “CPI Inflation Comes In Hot, Keeping Fed On Guard” Investor's Business Daily, 14 Feb. 2023,

    3. “Consumer price index January 2023:” CNBC, 14 Feb. 2023,

    4. “Inflation surged 6.4% in January, higher than expected” New York Post , 14 Feb. 2023,

    5. “CPI shows U.S. inflation still sticky” MarketWatch, 14 Feb. 2023,

    6. “Live updates: Stocks rise as annual inflation keeps falling” CNN, 14 Feb. 2023,

    7. “Monthly U.S. inflation accelerates in January, annual figure 6.4% By”, 14 Feb. 2023,

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