Inflation in the United States exceeded analysts’ expectations by 0.5% in January compared to the previous month, as Americans were affected by higher prices for housing, gasoline and fuel, the Labor Department said on Tuesday, as cited by CNBC and the News. .ro

The consumer price index, which measures a broad basket of common goods and services, rose 0.5 percent in January, bringing the annual increase to 6.4 percent.

Economists polled by Dow Jones expected prices to rise 0.4% monthly and 6.2% annually.

Excluding volatility in food and energy prices, the core CPI rose 0.4% month-on-month and 5.6% year-on-year, compared with estimates of 0.3% and 5.5%, respectively.

Rising housing costs accounted for about half of the month’s increase, the Bureau of Labor Statistics said in its report.

Although price rises have slowed in recent months, data for January showed that inflation is still a driving force in the US economy, which is at risk of slipping into recession this year.

This happened despite the Federal Reserve’s efforts to combat the problem. The central bank has raised its benchmark interest rate eight times since March 2022, with the latest increase this month as inflation hit a 41-year high last summer.

High inflation is causing a headache for Democrats ahead of the presidential election

The rising cost of living is likely to be one of the central themes of next year’s US presidential election, with incumbent President Joe Biden calling reducing inflation his “highest national priority”.

Although the election for the White House is not until next November, Joe Biden and his Democratic Party are hoping that the increase in the base interest rate introduced by the Fed will have the desired effect long before then, so that they can put other topics on the agenda of the national interests

Analysts predict that former President Donald Trump, who nominated his candidacy in the presidential election last November, will make the economic performance of the Biden administration one of the central themes of his campaign.

Although Joe Biden has not yet formalized his candidacy, the White House has repeatedly said that he plans to run again for the state’s highest office in 2024, despite the fact that he said in the previous election campaign that he would run for president.