{"id":13659,"date":"2025-02-19T19:09:23","date_gmt":"2025-02-19T19:09:23","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13659"},"modified":"2025-02-19T19:09:24","modified_gmt":"2025-02-19T19:09:24","slug":"is-inflation-moving-up-again","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/is-inflation-moving-up-again\/","title":{"rendered":"Is Inflation Moving Up Again?"},"content":{"rendered":"\n

John and Judith R. from Lexington, KY ask: <\/em>Hello Mitch, With the latest inflation report, it looks like prices are starting to move in the wrong direction again. Do you foresee this being a problem in 2025 for interest rates and ultimately the stock market? Thank you.<\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing, John and Judith. Please allow me to walk readers through the latest consumer price index (CPI) report and then I\u2019ll weigh in on your question.<\/p>\n\n\n\n

In January, headline CPI rose 3% year-over-year, and core inflation\u2014which excludes volatile food and energy prices\u2014came in at 3.3% for the month. On a monthly basis, CPI climbed 0.5%, which was above consensus estimates for a 0.3% increase. This marked the largest monthly jump since August 2023. Wages also saw a notable increase, and the University of Michigan\u2019s consumer survey reflected growing inflation expectations over the next year. All of these readings were hotter than most were expecting.1<\/sup><\/p>\n\n\n\n

The latest inflation report was especially concerning because it revealed broad-based price pressures rather than being driven by expected categories like housing and rent, which have been gradually cooling. Instead, inflation accelerated across goods and services that had previously shown signs of stabilizing. The market has also been weighing the potential effects of new import tariffs, weighed against supply-side factors such as deregulation and increased energy production that could help counteract price increases.<\/p>\n\n\n\n

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