- USA consumer prices, excluding the volatile food and energy categories, rose 0.3 percent last month.
As per use-based classification, the growth rates in December 2017 over December 2016 are 3.7 per cent in primary goods, 6.2 per cent in intermediate goods and 6.7 per cent in infrastructure/construction goods.
Investors have been pricing in a good chance that rates would rise in May, with a second rise later this year, probably in November. That can have an impact on the value of bonds in your portfolio, as well as the interest rate on any loans you might want to take out. The two-year ahead measure, which is often considered the headline result, jumped from 2.02 percent last quarter to 2.11 percent this quarter.
The biggest upward inflation kick to prices in January came from recreational, cultural goods and services said the ONS, "in particular, admissions to attractions such as zoos and gardens, for which prices fell by less than they did a year ago".
The central bank has raised its inflation forecast to 5.1 percent for the January-March quarter, compared with 4.6 percent for October-December, citing price pressures from higher import taxes announced in the budget on February 1, pushing up food and fuel prices.
Retail inflation eased in January to 5.07 per cent - after touching a 17-month high of 5.21 per cent in December - as food price rise showed some moderation.
"The IIP growth in December was mainly on account of uptick in manufacturing sector which constitutes 77.63 per cent of the index", the data released by the Central Statistics Office (CSO) showed, adding that it also grew by 8.4 per cent during the month as compared to just 0.6 per cent in December 2016.
Higher inflation has been fuelled in part by the Brexit-induced collapse of the pound, which has made imports more expensive and driven up the cost of living, adding pressure on households squeezed by paltry wage growth.
Commenting on the IIP data, industry body Assocham said that domestic market will be the driving force in the coming months as growing Indian economy will provide steady flow of new businesses.
Backed by lower prices of vegetables and fruits, the consumer price inflation eased to 5.07% in January from 5.21% in December, the government data showed.
"The fall back in oil prices to $63, from $70 in mid-January, also has brightened the near-term outlook".
"I do not expect a rate hike for the next five to six months", said Raghvendra Nath, managing director of Ladderup Wealth Management. Core inflation, which strips out more volatile price swings, rose 2.7% - more than expected. "We are helping cut costs for hard pressed families by boosting pay, cutting taxes for millions of people and freezing fuel duty at the pumps". "But surprises on inflation tend to be measured in basis points most of the time, and the inflation story is probably going to play out quite slowly", he wrote.