Wednesday, July 2, 2025

US CPI Data Suggests Covid-19 Continues to Dampen Inflation— For Now

Consumer prices rose slightly in January, while underlying inflation remained stagnant as the pandemic continues to ravage the US economy.

According to latest data released by the US Labour Department on Wednesday, the consumer price index increased by 0.3% in January, following a rise of 0.2% in the prior month. In the meantime, the core CPI, which measures price changes excluding food and energy costs, increased by 1.4% over the 12-month period, slightly missing economists’ expectations of 1.5%.

Of the notable declines, Food-at-home and Used car prices dropped by 0.1% and 0.9% respectively in January, despite strong demand for both amid the pandemic. Likewise, rent and shelter inflation continues to show signs of a slowdown, falling to the lowest level since August 2011. Rent prices dropped from 1.84% to 1.62% in January on a year-over-year basis, meanwhile shelter inflation declined from 2.28% in December to 2.05% last month — all despite historically-high housing prices…

Notably, Goods inflation skyrocketed in January, reaching the highest level since April 2012, meanwhile service inflation sunk to the lowest since November 2010. In response, US Treasury yields declined following the news on Wednesday, with the benchmark 10-year Treasury note dropping to 1.136%, while the Treasury bond remained at 1.928%.

The latest CPI data points to the growing debate in financial markets regarding the impending path of inflation. Despite the relatively modest January figure, price pressures are expected to inflate over the coming months, especially amid expectations that Congress will likely pass yet another stimulus package. Lawmakers are still debating the size of the next relief package, with President Joe Biden proposing a $1.9 trillion plan — something that many economists are warning will certainly spur a sudden outbreak of inflation.


Information for this briefing was found via the BLS and Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Is SF Fed President Mary Daly That Out Of Touch? Here’s What She Actually Said

In an interview with Reuters on Wednesday, San Francisco Federal Reserve President Mary Daly was...

Thursday, August 4, 2022, 04:24:00 PM

Unilever Hikes Prices Again, Forecasts Even Higher Inflation

Household product maker Unilever raised prices once again, warning that inflation is about to get...

Saturday, April 30, 2022, 03:08:00 PM

Americans’ Credit Card Spending Slumped 1.2% in April

US consumer demand is showing signs of weakening, as households curtail their credit card spending...

Wednesday, May 17, 2023, 03:47:00 PM

Joe Biden Assures Americans That Upcoming Inflation Print Doesn’t Reflect Current Economic Reality

Joe Biden has assured Americans that there is no need to believe Friday’s inflation numbers,...

Friday, December 10, 2021, 10:22:00 AM

Australia’s Inflation Soars to 30 Year-High as Food and Energy Costs Skyrocket

Australian consumer prices soared by the most in over three decades as food and energy...

Sunday, October 30, 2022, 11:19:00 AM