In January, the U.S. inflation rate fell to 2.4 percent from 2.7 percent in December, the U.S. statistics bureau announced on Friday.
Year‑over‑year, prices increased by 0.2 percent in the first month of the year. The core inflation-measured without energy and food-was 2.5 percent in January, down from 2.6 percent in December.
Energy prices saw a 0.1 percent decline year‑over‑year, after rising 2.3 percent month‑on‑month. Food prices increased 2.9 percent over the year, compared with 3.1 percent in December.
Investors closely watch U.S. inflation because it is a key indicator of the Federal Reserve’s monetary policy. High rates tend to hurt the stock market and real‑estate sector, partly because bank deposits remain an attractive alternative investment.
