Inflation Up 3% in January as Prices Continue to Rise
The U.S. Bureau of Labor Statistics reported the consumer price index grew by 0.5% to a 3% year-over-year increase in January, slightly above expectations and the fourth straight monthly increase. The CPI rose 2.9% year-over-year in December.
Continual CPI increases complicate the policy picture for the Federal Reserve Board, which just announced a pause in interest rate reductions last month.
The costs of food, shelter and energy are frequently cited as key indicators and each ticked up in January. Of greater concern to BLS analysts is the growth in “core” inflation, which does not include those and other commonly volatile metrics.
“The index for all items less food and energy rose 0.4% in January. Indexes that increased over the month include motor vehicle insurance, recreation, used cars and trucks, medical care, communication and airline fares,” analysts write, in part, in a release announcing the figures.
