US Inflation Remains Above Target Amid New Price Pressures
- brg_news_room
- 17 minutes ago
- 1 min read
USA: US inflation remains above target and may be accelerating, reducing the likelihood of near-term Federal Reserve rate cuts. The Fed’s preferred measure, core PCE inflation, is estimated to have reached 3% in December, its fastest pace in over two years and well above the 2% target. Early 2026 data also point to renewed price pressures. Adobe’s Digital Price Index recorded its sharpest January rise in 12 years, with annual online inflation at 2.9%, driven largely by electronics and household goods, possibly reflecting past import tariffs. Meanwhile, ISM surveys show businesses facing higher input costs, raising the risk these will pass through to consumers. With solid loan growth, resilient GDP and a stable labour market, some Fed officials are wary of easing policy too soon, noting inflation has persistently overshot target since 2021.
Source: Reuters
