Seasonality to Blame for Hot US CPI, Bloomberg Economics Says

The jump in US inflation last month that surprised investors was mostly due to the way the government adjusts for typical price increases at the start of the year, according to Bloomberg Economics.

The consumer price index rose 0.5% in January from a month earlier, the biggest advance since August 2023, seasonally adjusted data from the Bureau of Labor Statistics showed Wednesday. The so-called core measure, which Federal Reserve officials closely track as it excludes often-volatile food and energy costs, also climbed by more than forecast.

While the report spooked markets and reduced odds of a Federal Reserve interest-rate ...