Although US inflation has decreased for a seventh consecutive month, prices are still rising much faster than is deemed healthy.
The rate of price growth, or inflation, was 6 point 4 percent in the year leading up to January, driven up by increases in the prices of housing, food, and energy.
The percentage decreased slightly from 60.5 percent in December.
Despite recent signs of improvement, officials have warned that it will take time for prices to stabilize.
The price of beef has decreased from a year ago among food prices. However, the cost of eggs has increased by 70% since January 2021, and the price of butter and margarine has increased by almost 30%.
In comparison to a year ago, prices for televisions, smartphones, and used cars and trucks have also decreased. However, housing costs have increased by more than 7%, and the cost of services like haircuts has been increasing quickly.
The Federal Reserve, the US central bank, has aggressively increased interest rates in response to the issue in an effort to slow the economy and relieve pressures driving up prices.
However, the labor market has remained stronger than anticipated, sparking a heated debate among economists about how high borrowing costs will have to rise in order to get inflation back to the 2 percent rate that is thought to be healthy - and whether the economy can handle the increase without going into a painful recession.
According to analysts, the Federal Reserve is likely to continue raising interest rates in light of the most recent inflation data.
Ronald Temple, chief market strategist at Lazard, said that while disinflation is still occurring, it is happening more slowly than the Fed would prefer. "The Fed will need to see more moderate price gains and less tightness in the labor market to halt the tightening cycle. There is still a wait for both. ".
As the economy roared back to life after pandemic lockdowns in 2021, prices in the US skyrocketed. Companies raised their prices as a result of shortages and rising costs.
The situation got worse as a result of the war in Ukraine, which disrupted supplies of food and fuel, causing June's inflation rate to reach 91%, the highest level since 1981.
Since then, those forces have cooled. However, a lot of businesses have kept raising prices while citing rising expenses.
