US market’s celebration of easing inflation could falter as reasons for relief become clear: analysts

INVESTORS should not expect the recent upward momentum in US stocks to continue, analysts said, as an economic slowdown begins to emerge.

On Thursday (Jan 12), the United States Department of Labor released a report showing the consumer price index fell 0.1 per cent in December from a month earlier. On a year-on-year basis, prices of goods rose 6.5 per cent – a far less terrifying prospect than the summer peak above 9 per cent – and marking the sixth straight month of slowing inflation.

Some of the items that caused the inflation crisis – among them vehicles and electronics, which had been stranded in Covid-addled global supply chains – have recently fallen in price.