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

  • 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.



Already a Professional Adviser member?


More on Economics / Markets

Bank of England

Bank of England holds rates at 5.25% after inflation falls

MPC in split decision after inflation unexpectedly fell in August

Valeria Martinez
clock 21 September 2023 • 3 min read
Food inflation remains well above the headline rate but has also fallen, down to 13.6% from las month’s 14.9% figure.

Rate rise remains likely despite surprise inflation fall to 6.7%

Prospect of more hikes cannot be taken 'off the table'

James Baxter-Derrington
clock 20 September 2023 • 1 min read
Even during the Global Financial Crisis, opinions of the Bank of England remained positive

Public satisfaction with Bank of England falls to record low

Only 19% satisfied with the BoE's performance in fighting inflation

Elliot Gulliver-Needham
clock 19 September 2023 • 1 min read