Inflation picked up speed in January as the cost of rent and home ownership continued to rise. The Bureau of Labor Statistics reports the Consumer Price Index rose 0.5% last month after a 0.4% increase in December.
For the last 12 months, the nation’s inflation rate rose to 3%. The cost of shelter accounted for 30% of last month’s increase.
The energy index rose 1.1% over the month, as the gasoline index increased 1.8%. The index for food also increased in January, rising 0.4%.
In a shift from previous months, the index for food at home – the category for grocery prices – rose 0.5% while the index for food away from home – the category for restaurants – increased just 0.2%.
In spite of last month’s jump in grocery prices, the index for food at home index is up less than 2% over the last 12 months. Within that index the cost of meats, poultry, fish, and eggs surged 6.1%, driven largely by the price of eggs. The cost of eggs alone is up 53% over the last 12 months. The cost of dairy and related products is up 1.2%.
The cost of rent has risen by 0.3% for each of the last four months and is up 4.2% over the last 12 months. The cost of owning a home gained 0.3% in January and is up 4.6% year-over-year.
The cost of car insurance also spiked last month, rising 2%. Insurance premiums are up over 11% over the last 12 months.