US households hit by soaring inflation as wealthy 'continue to prosper'

7.5% CPI in January

clock • 2 min read

In a further sign inflation is becoming an endemic issue, the US consumer price index hit 7.5% in January - its highest level since 1982.

Commentators have noted how the effects will be most felt in lower income households, while wealthy citizens continue to make gains off the back of the pandemic. The latest US inflation figures should make any remaining bond bulls "queasy", according to Seema Shah, chief global strategist at $980bn manager Principal Global Investors. "What's worse, is that this likely isn't the peak," said Shah. "Energy prices subtracted from January's CPI data, so their recent surge suggest even more upside ahead. "In addition, higher-than-expected monthly gains in core CPI indicate continued unde...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Chancellor Khalaf has a plan to make our economy boom

Chancellor Khalaf has a plan to make our economy boom

'So, Sir Keir, if you're reading, I do genuinely hope Rachel is doing okay. And my number's still the same. So, you know, call me'

Laith Khalaf
clock 25 July 2025 • 5 min read
UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

Speaking at IA annual conference

Sorin Dojan
clock 26 June 2025 • 2 min read
Trust in ONS data 'very low' as financial services shifts to alternative sources

Trust in ONS data 'very low' as financial services shifts to alternative sources

Follows latest inflation blunder

Sorin Dojan
clock 24 June 2025 • 4 min read