US Inflation: January CPI in Focus for Investors Today

• US annual inflation stabilized at 2,9%
• Slight slowdown in consumer prices in January
• Bitcoin exhibits volatility amid economic expectations

Financial markets are on hold as the US Consumer Price Index (CPI) report approaches, scheduled to be released on Wednesday at 8:30 a.m. New York time. The report is eagerly awaited by investors seeking clues about the direction of inflation and possible adjustments to US monetary policy.

Inflation in January is expected to rise by 2,9% year-on-year, remaining stable compared to December. On a monthly basis, consumer prices are expected to have increased by 0,3%, representing a slight slowdown compared to the 0,4% growth observed in the previous month.

In addition to the overall indexes, core prices, which exclude volatile food and energy costs, are also a point of concern. They are estimated to have increased by 3,1% year-on-year in January, the lowest level since April 2021. This indicates a slowdown from the 3,2% recorded in December, marking the first time since July that year-on-year growth in core prices has slowed.

Federal Reserve Chairman Jerome Powell reinforced the central bank’s position when he testified before Congress on Tuesday. Powell stressed that the U.S. economy is robust and that current monetary policy is adequate to deal with uncertainties, including new government measures. “We are in a very good position,” Powell said, mentioning variables such as tariffs, immigration and fiscal and regulatory policies that are under review.

Amid this backdrop of anticipation and caution, the S&P 500 closed Tuesday flat, roughly 1% below its record high reached last month, reflecting the “wait and see” approach adopted by investors.

In the cryptocurrency market, Bitcoin showed signs of strength during the beginning of the week, surpassing the US$ 98.000 mark, before retreating to around US$ 95.000.