# Dollar slumps as U.S. inflation surge comes in line with expectations

> The dollar fell to a two-month low against a basket of currencies after US consumer prices rose 7.0% year on year in December, in line with expectations. The reading was the largest annual increase since 1982 and reinforced expectations for Federal Reserve rate hikes starting in March.

- Date: 2022-01-12 · published 2022-01-12T12:00:00.000Z
- Category: report · region US · magnitude low
- Page: https://feedsoft.ai/events/43389-dollar-slumps-as-u-s-inflation-surge-comes-in-line-with-expectations
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A softer dollar supports dollar-priced commodities, but expectations for tighter Fed policy keep the currency supported over the medium term, affecting the cost of imported feed inputs.

## Read by commodity

- DXY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-11-10 | [EUR/USD Soars After Softer-Than-Expected U.S. Inflation Data \| Investing.com](https://feedsoft.ai/events/8196-eur-usd-soars-after-softer-than-expected-u-s-inflation-data-investing-com.md) | -1.6% | -2.8% |
| DXY | 2022-02-02 | [U.S. dollar falls after private jobs data; euro up as inflation heats up](https://feedsoft.ai/events/42903-u-s-dollar-falls-after-private-jobs-data-euro-up-as-inflation-heats-up.md) | -0.2% | +0.3% |
| DXY | 2025-01-15 | [Dollar ends session weaker as inflation eases; yen firms on BOJ talk](https://feedsoft.ai/events/12676-dollar-ends-session-weaker-as-inflation-eases-yen-firms-on-boj-talk.md) | -0.8% | -0.8% |
| DXY | 2019-04-29 | [US Dollar Soft On Personal Consumption Expenditure Misses](https://feedsoft.ai/events/59762-us-dollar-soft-on-personal-consumption-expenditure-misses.md) | -0.2% | +0.5% |
| DXY | 2020-03-24 | [Euro-Dollar Rate Jumps Above 1.08 As US Services-Sector Confidence Slumps To Record Low](https://feedsoft.ai/events/11348-euro-dollar-rate-jumps-above-1-08-as-us-services-sector-confidence-slumps-to.md) | -2.3% | -2.4% |

## Sources

- cnbc.com: https://www.cnbc.com/2022/01/12/forex-markets-fed-us-inflation-data.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.