US inflation slightly higher than expected

In January, US inflation dropped but not as much as anticipated, with consumer prices rising by 3.1% year-on-year, a 0.3 percentage point deceleration from December. However, analysts had forecast a 2.9% core inflation rate. Danish Chamber of Commerce economist Tore Stramer indicates that inflation is not yet under control, pointing to increasing employment, wage growth, and rising housing prices. The strong economic indicators suggest the Federal Reserve’s expected interest rate cut may be delayed, now possibly not occurring before June. The Fed’s long-term goal is to reduce inflation to 2%. Negative market reactions included drops in US stock futures and Denmark’s C25 index, alongside rising market interest rates and the dollar value.