The troublesome American inflation data has arrived. I mentioned before that I expected it to be a little high. This time it's New Year's shopping with known inflation. In that period, inflation can always climb to higher levels than it should be in America. But overall inflation continues on the right track. Core inflation continues to decline. First, let's take a quick look at the numbers and then interpret them. Core inflation reached 3.9% year over year, compared to a target of 3.8%. But the downward trend continues. There may be such monthly tabs from 4%. Monthly core inflation was expected to be 0.3 and came to 0.3. So, there is a slight increase in the fraction here, which goes up to 3.9. We expected headline inflation to be 0.2, but it came to 0.3. The previous month it was at 0.1 but it was a bit extraordinarily low. Frankly, I was saying maybe we could push 0.2. It wasn't what I expected. Therefore, headline inflation increased from 3.2% to 3.4% annually. Now they will immediately come to scare you, saying inflation is scary and so on. That's why it's useful to look at some details.
Firstly, there was almost no base effect inflation this month. Because inflation in December last year was very low. On the other hand, headline inflation in January and February last month was quite high at 0.5% and 0.4%. Since we are now in the headlines at 3.3, we will drop 0.5 from here and it will reach 2.8. I expect 0.1 inflation next month. In this case we will see 2.9 or 3.0. There is another 0.4 base decrease the following month. If it reaches 0.2, we will reach a figure between 2.8 and 2.7 in February. The FED sees this too. I already mentioned in December that inflation might be a bit high. When we look at the core, the situation is no different there. Last year, there were very high cores in January, February, March and April. My guess is that they will quickly pull the nucleus backwards due to the base effect. By March or April at the latest, we will be talking about numbers starting with two, thanks to these harsh base effects. Because remember, this month the core came high, 0.3. But always 0.3 is smaller than all of these. In other words, inflation seems to be going backwards every month and from year to year in the headlines.
So, due to which items inflation was high? We can also look at that, there is no problem with food, it is the same as last month, 0.2. When you annualize this, it corresponds to 2.4% annual inflation. The decline in energy has decreased. The previous month there was 5.8 minus inflation. This month it reached -0.1 and there is no serious problem there either. -2 as this decline in the total energy category has slowed down. We went from 3 to + 0.4. The energy multiplier is a bit big, it has a multiplier of 6.74. So, if inflation is 100, 6.74 of it comes from energy. That's why the news is a bit negative. When we look at the product side, inflation, minus energy and food, is 0. In fact, inflation is negative in many items. Clothes are cheaper, cars are cheaper, there is no problem here. In other words, inflation on the product side in America is zero. There is a deflationary structure in many products.
On the services side, the biggest item is housing, which has a 34,795% impact on inflation. The decline continued there. From 0.5 to 0.4, this is pleasing. Accommodation outside, that is, vacationing, has also become cheaper. It went down from 05 to 04. The only issue that remains here is that they go and ask the homeowners whether the price of this house would increase or decrease if you rented this house. I don't know why this has a 26% impact on inflation in total. They said it wouldn't get cheaper and kept it constant last month. I was expecting a slight decline here would be good. Because its effect is very, very high, but at least there is no increase there. The places where we conceded goals are the medical services department. It was high last month, and this month it is even higher. There's not much the FED can do about this. This has something to do with the policies of the American state and health institutions. In other words, people will not benefit from healthcare services just because the interest rates are higher. There is a shortage of personnel and scarcity of opportunities in health care, both here in America and around the world. Because of this, prices are rising. Likewise, in its subcategories, such as hospitals, the monthly rate increased from 0.1 to 0.5. This, of course, seriously affects inflation. When we look at health services, the multiplier is 6.37%, which is not small at all.
When we look at transportation services, inflation in transportation services has decreased. from 1.1 to 0.1. This is extremely pleasing. However, some items keep inflation high. For example, insurance and vehicle insurance are increasing rapidly in America. It came to 1.5%, why is it increasing like this? To put it simply, it's because of the greed of automobile companies. Because all automobile companies make their cars impossible to repair in normal services, this is one of the reasons.
When we look at the transportation side, inflation has decreased, only inflation is high in air transportation. There is a shortage of pilots there, just like everywhere else in the world. Other transportation categories fell.
We see an escalation in entertainment services from 0.1% to 1.1%. Of course, the snow holiday has a lot to do with this. It started snowing, we are going there in America. I talked to a friend of mine recently. He says ski holidays are very expensive this year. Because there is little snow and people cannot reach it because there is little snow. They increase prices in places with profitable areas. Again, frankly, this is not an issue related to the FED's policy.
Inflation seems to be zero in pet service. On the education side, inflation has gone up slightly to 0.2. Other person service has also dropped. So, when we look at the overall report, product inflation, which is the main area where the FED can influence, is zero, it is over. There is no problem with food inflation. The energy is up but it will go backwards again this month. Because, as you know, the Saudis are reducing oil prices because there is no demand at the moment.
When we look at the services side, the decrease in rents continues, but if you ask the landlords, they do not decrease and they come on their own and raise them considerably. The FED will see this. So, I do not see a serious problem here in terms of FED policies. It would probably be beneficial for the state to sit down on the medical services side and negotiate with the organizations that provide these medical services. Because raise the interest rates as much as you want, people will go to those hospitals. So let's see what the market is doing? So, I thought that the market had already priced in a slightly higher inflation rate and had come here. As you know, especially American 10-year bonds have increased since the beginning of the year. They went above 4%. Today, 0.82 is going up. Frankly, the stock market will be negatively affected by this today. But what really matters for us will be January inflation. I have previously stated that we will see the main declines in January and February. Here we see that the FED will not say anything new about inflation at the meeting it will hold towards the end of January. He won't talk about interest rate cuts or anything like that. But the path is clear because product inflation, which is the area that the FED mainly affects, has reached zero. When you look at the items there, most of them are deflationists. Inflation may come and go like this from time to time.
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