A Northeastern University economist says that the downward trend in the inflation rate appears to be “stalling out,” after a slight jump in January surprised analysts on Wednesday. U.S. inflation rose to 3%, according to data from the Bureau of Labor Statistics with the Consumer Price Index up 0.5% from December — the fastest monthly increase since August 2023. Last month the annual pace was 2.9%.
“There’s been a period of disinflation — meaning the inflation rate has come down — but it appears to be stalling out at a level that’s above the Federal Reserve’s target of 2% on a year-to-year basis,” says Bob Triest, professor of economics at Northeastern University. Triest predicts the new data will make the Federal Reserve pause on any decisions to lower interest rates. “My reading of the data is that the inflation rate will likely resume its downward trajectory,” Triest continues. “But I think the Federal Reserve will be wise to take a wait-and-see stance and look at the data and see what actually does happen.”
