The pace of U.S. inflation eased in January, with consumer prices rising at a slower annual rate as energy costs declined and shelter remained the biggest driver of monthly gains.
In January, the Consumer Price Index for All Urban Consumers rose by a seasonally adjusted 0.2%. Prices were 2.4% higher than a year ago, the Bureau of Labor Statistics said on Friday.
The 12-month inflation rate cooled from 2.7% in December, while the monthly gain also slowed compared with the prior month’s increase.
In January, shelter prices rose by 0.2%. Shelter prices increased the most and were the biggest single influence on the monthly change in the CPI. In the month of January, food prices rose by 0.2%. This was driven by a 0.2% increase in groceries and a 0.1% increase in meals eaten away from home. This was partly offset by a 1.5% drop in the energy index.
Excluding volatile food and energy categories, “core” consumer prices rose 0.3% in January, according to BLS. Categories that posted monthly increases included airline fares, personal care, recreation, medical care, and communication. Several categories declined, including used cars and trucks, household furnishings and operations, and motor vehicle insurance.
The data is being watched by families and policymakers alike to see how inflation is settling down closer to the Fed’s comfort zone after a series of fluctuations over the past few years. Although inflation has cooled from its earlier highs, housing and food prices still weigh on families.
In the past year, the food index has increased by 2.9%. In the past year, the energy index has fallen by 0.1% for the year ending January, the BLS said. This has helped pull inflation down. In the past year, core consumer prices rose by 2.5%.
Economists had expected a hotter January inflation reading, although the figures released by the BLS showed a slightly milder monthly increase than economists had expected.
A global media for the latest news, entertainment, music fashion, and more.
