Consumer prices have risen more than expected in January
New inflation data on Wednesday showed that January headline consumer prices rose above forecast as core prices last month focused on the progress of the Federal Reserve.
Latest data The Bureau of Labor Statistics has shown that the Consumer Price Index (CPI) had increased by 3.0% in the previous year in January. An increase from a price increase of 2.9% per year in December.
The index rose 0.5% in the previous month, a small acceleration from the biggest monthly headline increase since August 2023 and the 0.4% increase seen in December. Economists expected an increase of 0.3%.
Seasonal factors such as increased fuel costs and continued stickiness in food inflation have led to increased headline numbers. In particular, according to BLS, the egg index rose 15.2%, the largest increase since June 2015.
On a “core” basis, which removes more unstable costs for food and gas, prices in January are up 0.4% from the previous month, higher than the 0.2% of each month in December, and the largest monthly fee since April 2023 increase.
Core prices rose 3.3% from last year, up from 3.2% seen in December.
Core inflation remains stubbornly rising Due to the shelter stickiness cost Insurance and medical services. The shelter showed signs of easing last month, rising 4.4% per year, showing the lowest 12-month increase in three years.
That’s a different story for used car prices, and we’ve seen even bigger increases for the fourth straight month. The index rose 1.2% in December and 2% in November before rising 2.2% in January.
Inflation is slowing down, 2% Fed Reserve Target It refers to the “lumpy” path ahead, on an annual basis between economists and Fed officials.
“There’s no sugar coating on this. It’s not a good print,” Claudia Sahm, chief economist and former Federal Reserve economist, told Yahoo Finance’s Morning Brief program.
“One thing to say is that this is a familiar disappointment,” she continued, noting that the start of the new year had previously contributed to the astonishing surprise of the upwards. “Using hot prints in January in recent years was a common occurrence, and it was a common occurrence that dissipates over the years. So this is not a year-wide trading breaker, but certainly not. That’s certainly not a good way to start things.”