January inflation data complicates the Fed’s plan to raise eggs, energy costs, and consumer prices
New inflation data on Wednesday shows consumer prices have risen higher than expected in January as core prices eased last month’s easing, focusing on the Federal Reserve path. Ta.
Latest data The Bureau of Labor Statistics has shown that the Consumer Price Index (CPI) rose 3% 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. Egg prices have skyrocketed by 53% compared to the previous year.
read more: From $5 eggs to premiums, sheE is rising in prices
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. Similarly, the year-over-year increase in rents was the coolest since February 2022.
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.
Used cars may have contributed to the overall increase in core products, reaching its highest level since May 2023.
Inflation is slowing down, 2% Fed Reserve Target On an annual basis, where economists and Fed officials point out the “lumpy” path ahead.
“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.”