The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% on a seasonally adjusted basis in January, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.4% before seasonal adjustment.
Shelter costs rose 0.2% in January, accounting for the largest share of the monthly increase, while energy prices fell 1.5%.
Core inflation, which excludes food and energy, climbed 0.3% for the month and 2.5% over the past year.
Inflation moderated slightly in January, as lower energy prices helped offset continued increases in housing and other service-related costs, according to new data from the U.S. Bureau of Labor Statistics.
The 0.2% monthly rise in the Consumer Price Index follows a 0.3% increase in December. On an annual basis, consumer prices were up 2.4% for the 12 months ending in January, down from a 2.7% year-over-year increase recorded in December.
Shelter costs — which include rents and owners’ equivalent rent — rose 0.2% in January and were the largest contributor to the overall monthly gain. Over the past 12 months, shelter prices have climbed 3.0%, continuing to put upward pressure on household budgets.
Grocery prices continued to climb
Food prices also moved higher, increasing 0.2% in January. Grocery prices, measured by the food-at-home index, rose 0.2%, while food away from home — such as restaurant meals — increased 0.1%. Compared with a year ago, overall food prices are up 2.9%, with restaurant prices rising 4.0% and grocery prices up 2.1%.
Energy prices, however, provided some relief. The energy index fell 1.5% in January, led by a 3.2% drop in gasoline prices. Energy commodities overall declined 3.3% for the month. On a year-over-year basis, gasoline prices are down 7.5%, contributing to a 0.1% decline in the broader energy index over the past 12 months.
Core inflation — which excludes the more volatile food and energy categories — rose 0.3% in January. Over the past year, core prices increased 2.5%.
Within the core categories, airline fares, personal care, recreation, medical care, and communication were among the indexes that posted gains in January. Medical care services rose 0.3% for the month and are up 3.9% compared with a year ago.
Some categories saw declines. Prices for used cars and trucks fell 1.8% in January and are down 2.0% over the past 12 months. Household furnishings and operations and motor vehicle insurance also recorded monthly decreases.