Reduced prices for a group of energy products - gasoline.
Prices for products grew slightly by 0.3%.
But prices for rental housing and housing-related services increased by almost 0.8%.
This is starting to show itself as an interest rate.
Make no mistake, the current inflation rate is still very high. 6.5% per annum is almost three times higher than the target. But as it warned in the forecast on December 31, 2022, the Fed will act with extreme caution, as there are already signs of the market drying up, and the maximum effect from the rate increase should be expected by March, that is, the ninth month after the interest rate increase (June 22).
Conclusion: As I said in December, in January interest rate growth is likely to be no more than 50 basis points. I'm more inclined towards surgery up to 25 basis points.
Author: Novel in macroeconomics