• Inflation in the US has been decreasing since November, with the rate dropping to 6.4% in January according to the latest data from the Bureau of Labor Statistics.
• JPMorgan Chase & Co.’s economic experts predicted a drop to 6.2%, while Morgan Stanley predicted a 0.4% gain when comparing December and January numbers.
• The current rate will be a major factor for Federal Reserve policymakers regarding interest hike, with market participants anticipating two more increases of the benchmark interest rate before 2023.

U.S Inflation Falls to 6.4% in January

Recent release from the U.S Bureau of Labor Statistics showed that inflation has fallen to 6.4% in January, exceeding expectations from JPMorgan Chase & Co.’s economic experts predicting a drop to 6.2%. This trend follows near the conclusion of last year when inflation started moderating and December’s rate fell to 6.5%.

Market Reactions

The long-awaited report was met with favorable reactions from the market which may have a positive effect on Bitcoin and other cryptocurrencies prices as stocks are likely to suffer if figure is higher than 6.4%.

Interest Rate Increase Imminent

The most recent data set will also be an important factor for Federal Reserve policymakers regarding decisions about interest hike, with market participants expecting two more increases of the benchmark interest rate within this year before falling back again in 2023 as predicted by Federal Reserve Chair Jerome Powell..

Impact On Economy

The effects on economy due to changes in inflation rates are likely to be positive in long run as per experts‘ predictions although there might be some short term decline in stock markets due to current figures exceeding expectations .

Conclusion

Inflation rates play an important role for economic stability and growth, so it is necessary for policy makers and investors alike keep track of these fluctuations regularly in order make informed decisions regarding investments and future goals accordingly