Wall Street has taken a dip after the biggest rise in CPI data in more than two years sparked fears the Federal Reserve could hike rates.

Federal Reserve Chair Jerome Powell said earlier this week that while inflation was sobering, it still had not hit the 2% target. 

Follow the day's financial news and insights from our specialist business reporters on our live blog.

Disclaimer: this blog is not intended as investment advice.

Key Events

1. Happy Thursday!

Market snapshot

• ASX 200 Futures: +0.2% to 8,495 points
• Australian dollar: -0.1% to 62.85 US cents
• S&P 500: -0.2% to 6,055 points
• Nasdaq: +0.2% to 19,672 points
• FTSE: +0.3% to 8,807 points
• EuroStoxx: +0.1% to 547 points
• Spot gold: Flat at $US2,899/ounce
• Brent crude: -2.4% to $US75.13/barrel
• Iron ore: +1.8% to $US107.80/tonne
• Bitcoin: +1.2% to $US97,511

Price current around 7:20am AEDT

Live updates on the major ASX indices:

Origin Energy results out today

Origin Energy will hold an investor briefing at 9.30am today, where chief executive Frank Calabria will present the company's half-year results.

Stay tuned!

CommBank tight-lipped on passing on rate cut

ICYMI CommBank's chief executive Matt Comyn spoke with ABC business editor Michael Janda yesterday about rate cuts, and how much customers are struggling to pay their mortgage.

Watch the full interview here:

Trump makes yet another tariffs announcement

The White House says US President Trump will announce reciprocal tariffs on every country that charges duties on US imports by Thursday local time.

Republican US House of Representatives Speaker Mike Johnson told Reuters on Wednesday he believed Trump was considering exemptions that would include the automotive and pharmaceutical industries, among others.

"But I'm not certain. You have to wait, ask the White House about that," he said.

The White House did not immediately respond to a request for comment.

It comes after Trump's announcement earlier in the week that tariffs would be imposed on steel and aluminium imports from March.

Prime Minister Anthony Albanese had a 40-minute phone call with the president to hash out an exemption, which he said the president was considering.

Reciprocal tariffs are most likely to come from Europe. An EU government official told Reuters ministers discussed potential responses, including reinstating the countermeasures imposed in 2018 on products like bourbon and Harley-Davidson motorbikes.

Those measures were suspended following an agreement with the Biden administration.

An EU diplomat said it was time to be "cool-headed" with a month to go before the tariffs take effect.

Let's dive into US CPI data

We're all well aware by now that reserve banks use CPI data to measure the pulse of the economy and decide on rate cuts or hikes.

The latest data out of the US shows, in January, prices increased the most since August 2023.

It has reinforced the message from Fed Reserve Chair Jerome Powell that he was in no rush to continue cutting rates.

CPI rose +0.5% in January, led by price rises in prescription medicines, shelter, car insurance, food, and petrol.

For the year to January, prices rose +3  year-on-year.

Underlying inflation was +0.4% in January and +3.3% year-on-year — both higher than expected.

It's sparked fears President Trump's tariffs push could raise prices even more on imported goods and reignite inflation.

Shelter, which includes hotels and motel rooms, increased +0.4% and accounted for nearly 30% of the rise in the CPI. 

Food prices also rose +0.4%. Grocery store prices surged +0.5%, with the cost of eggs soaring +15.2% due to the bird flu crisis. It was the largest increase since June 2015 and accounted for about two-thirds of the rise in supermarket prices.

If a rate cut happens, how much could you save?

There could soon be relief for households with a mortgage, with economists predicting an interest rate cut when the Reserve Bank board meets in February.

If there is a rate cut and the banks pass it on in full, households with a home loan will see a drop in minimum monthly repayments.

Watch the latest from business reporter Emily Stewart:

Happy Thursday!

Good morning and welcome to Thursday's markets live blog, where we'll bring you the latest action and news on markets at home and abroad.

The ASX 200 is forecast to open higher struggles on Wall Street.

CPI in the US rose +0.5% in January and +3% compared to January 2024.

The jump was partly due to businesses raising prices at the start of the year, especially for prescription medication and car insurance.

The Aussie dollar is in the red making 62.84 US cents.

Bitcoin has jumped +1.1% and is hovering at $97,475.

Iron ore is up +1.8% to $US107.80 a tonne, and gold is flat at $2,898.

If there's anything you'd like us to take a look at today feel free to drop a note in the comments or email me at [email protected]