US Consumer Prices Increase 0.3% In January, With Annual Inflation At 3.1%

The Consumer Price Index for All Urban Consumers experienced a 0.3% increase in January, marking a slight uptick from December’s 0.2% rise, as reported by the U.S. Bureau of Labor Statistics. This incremental growth underscores a broader trend of modest inflation over the past year, with a 3.1% increase in the all items index observed over the last 12 months.

A significant driver of this month’s increase was the shelter index, which rose by 0.6%, contributing to over two-thirds of the overall monthly growth. Additionally, food prices edged higher by 0.4%, with both the “food at home” and “food away from home” indexes reflecting similar uptrends. However, the energy sector painted a different picture, with a 0.9% decline, primarily influenced by a notable drop in the gasoline index.

Excluding the volatile sectors of food and energy, the index for all items less food and energy climbed by 0.4%. This increase was supported by rises in shelter, motor vehicle insurance, and medical care indexes. On the flip side, the indexes for used cars and trucks, as well as apparel, faced declines.

Year-over-year a 3.1% increase in the all items index was recorded, slightly below the 3.4% rise ending in December. The index excluding food and energy maintained a 3.9% growth rate, mirroring the previous year’s trend. Energy prices saw a 4.6% decrease over the past 12 months, whereas food prices witnessed a 2.6% increase.

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Information for this story was found via the Bureau of Labor Statistics. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.