The January Consumer Price Index rose 3.1 percent on an annual basis. That’s down slightly from the 3.4 percent CPI in December. Inflation levels were higher than many analysts anticipated, but the Biden Administration downplayed that expectation. “We always want to see that the increase in prices is lower than the increase in wages so overall wage growth is outpacing inflation in January,” said Kirabo Jackson, a member of the White House Council of Economic Advisors. In an interview with RRFN, Jackson pointed to the CPI and a 1.6 percent increase in wages above and beyond inflation, as evidence of a “strong economy that is growing at a healthy pace.” The Federal Reserve Bank uses economic data, like the CPI, to make interest rate decisions.
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