Stocks in the United States and Europe slumped on Tuesday while the dollar climbed as data showed that US inflation slowed less than expected in January, diminishing chances of an early interest rate cut.
The closely watched Consumer Price Index (CPI) rose 3.1 per cent from a year ago in January, down from 3.4 per cent in December, the Department of Labor said, while analysts had tipped the rate could fall below 3.0 per cent.
Meanwhile, the “core” CPI reading that excludes volatile food and energy prices and is more important to policymakers, was steady at a 3.9 per cent annual increase.
The US Federal Reserve has indicated it will likely begin to cut interest rates – which it began to hike in 2022 to tame surging inflation – later this year as the pace of price rises returns closer to its 2.0 percent target. That has heightened the attention of…
