US inflation is picked up ahead of tariffs

(Bloomberg) – U.S. inflation was widely picked up at the start of the year, further reducing the likelihood that the Federal Reserve will soon cut interest rates.

The Consumer Price Index has been the biggest increase since August 2023, leading various household expenses such as food and gas, as well as housing costs. The Fed will continue to suspend in the near future as officials make President Donald Trump’s policies more clear, particularly tariffs.

After the CPI report, Trump ordered the administration to consider imposing mutual tariffs on numerous trading partners, raising a broader campaign outlook for the global system he says is leaning against the United States.

Below is a part of the charts on the latest developments in global economy, markets and geopolitics published this week in Bloomberg.

Inflation tends to be higher in January as many companies choose to increase prices and rates. That pattern has worsened in the post-pandemic era, with some predictors suggesting that the surge in price growth last month will not be repeated in the future.

Retail sales in January fell the worst in nearly two years, showing a sharp pull by consumers after spending several months in 2024. The data included periods characterized by the devastating wildfires in Los Angeles. USA – And severe winter weather in other parts of the country could have been decreasing brick and mortar shopping activities.

Economists warn that the next phase of Donald Trump’s trade war will open a new front all over Asia, with India and Thailand most exposed to the risks from the US president’s pledge to impose mutual tariffs on partners Masu.

Rough shipments from projects in Russia’s Sakhalin Island have not been discharged after the tankers carrying them have been approved by the US. The ship, which was still in static for at least a week, holds around 6.3 million barrels of Pacific crude oil.

Zambia raised interest rates higher for over eight years, but Uruguay’s central bank also hiked. The Philippines, Peru, Serbia and Romania left unchanged borrowing costs. The Bank of Russia kept the rate at a record high, while Namibia cut it.

France’s unemployment rate fell unexpectedly at the end of 2024, showing signs of economic resilience in the country tackling political instability and rising debt. A small improvement in the labor market provides Prime Minister François Bailloux’s minority government with some relief as they struggle to curb and curb the large budget deficit.

Norwegian economy surprised the last quarter with its biggest contraction since the pandemic, and shored up lawsuits for the country’s central bank to launch its much-anticipated easing campaign.

When the weather in Germany is cloudy and mild, windmills and solar power plants do not send electricity to the grid. Instead, they send shockwaves through the market. One such “Dunkel Fraute” day in mid-December saw spot electricity prices rise to more than 900 euros ($939) per megawatt hour, nine times above the average.

China saw a record outflow of foreign direct investment last year. This is an escape that could last after the resumption of the trade war with the United States. Net FDI fell by $168 billion in 2024, according to the state administration of foreign exchange, the largest capital flight in data dating back to 1990.

Japan’s current account surplus reached record highs in 2024, with the weakness in the yen increasing the value of its overseas investment revenue. A record surplus of primary revenue of 40.2 trillion yen ($264 billion). This includes interest and dividends earned from overseas investments, as well as offset deficits in trade and services balances.

China’s busiest ports processed a record amount of goods in January. This is because businesses are in a hurry to deliver products to the ship before long local holidays and before US tariffs begin. The Shanghai port has processed a record five million containers. Last year, Chinese companies shipped almost $525 billion worth of goods directly to the US. This is the third highest tally on record.

Brazilian inflation lost earlier this year as former energy credits provided temporary relief from boiling price pressure on consumers.

Inflation in Argentina reached its lowest level as President Javier Milei took office and annual consumer prices remained below 100% for the first time in two years, keeping crisis-induced economic expectations under control.

Emerging market stocks headed for profit in the fifth week as traders bet on positive outcomes from negotiations on US tariffs and how to get out of the Russian war in Ukraine. There are growing expectations that the ultimate impact of US President Donald Trump’s proposed trade tariffs will slow down by the end of international consultations and other delays.

– Supported by William Hollobin, Julian Lee, James Mager, Yoshiaki Nohara, Andrew Rosaty, Zoe Schnee Souzi, Manuela Tobias, Otto Unmelas and Josh Xiao.

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