Economic Trends

January U.S. Consumer Prices Rise Faster than Expected

The Consumer Price Index rose month-to-month and year-over-year, both surpassing expectations with increases in shelter, food and core inflation.

The Bureau of Labor Statistics released its monthly Consumer Price Index Summary on Feb. 12, showing that its all-items index increased 3.0% for the 12 months ending January.

On a monthly basis, January’s all items index increased 0.5%, following a 0.4% rise in December and 0.3% gain in November.

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Economists polled by Reuters expected both the monthly overall CPI and core index to rise by 0.3%. Meanwhile, the annual overall gain likewise topped expectations of 2.9%, with the core index’s 3.3% gain topped expectations of 3.1%.

The monthly index for shelter rose 0.4% in January vs. December, which accounted for nearly 30% of the all items increase. The index for food increased 0.4% in January, while the index for food at home rose 0.5% and the index for food away from home increased 0.2%.

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The monthly index for all items less food and energy — known as core inflation — rose 0.4% in January, following four consecutive increases of 0.3%. Indexes that increased in January, include: motor vehicle insurance, recreation, used cars and trucks, medical care, communication and airline fares.

On a year-over-year basis, January’s core inflation rose 3.3%. The year-over-year energy index increased 1.0%, while the food index increased 2.5%.

U.S. Core Inflation Rate – Month-Over-Month