Inflation Up 3% in January

Washington, DC, February 12, 2025-The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% on a seasonally adjusted basis in January, after rising 0.4% in December, the U.S. Bureau of Labor Statistics reported. 

Over the last 12 months, the all-items index increased 3.0% before seasonal adjustment.

The index for shelter rose 0.4% in January, accounting for nearly 30% of the monthly all items

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% as the index for food at home rose 0.5% , and the index for food away from home increased 0.2%.

The index for all-items less food and energy rose 0.4% in January. Indexes that increased over the month include motor vehicle insurance, recreation, used cars and trucks, medical care, communication, and airline fares.The indexes for apparel, personal care, and household furnishings and operations were among the few major indexes that decreased in January.

The all-items index rose 3.0% for the 12 months ending January, after rising 2.9% over the 12 months ending December. The all items less food and energy index rose 3.3% over the last 12 months. The energy index increased 1.0% for the 12 months ending January. The food index increased 2.5% over the last year.

“Consumer prices rose more briskly than expected in January, extending a recent pattern of price increases at the start of the year that likely derails the prospect for Federal Reserve rate cuts so long as the economy remains solid,” reports the Wall Street Journal.

“The uptick in prices comes as newly sworn in President Trump vows to lower prices for Americans, a pledge that helped lead to his election.

“The bigger-than-expected increase in prices last month largely reflected higher prices for used cars and auto insurance, said Omair Sharif, founder of research firm Inflation Insights.

“Higher housing costs helped fuel the rise, along with auto insurance and airfare. Grocery prices rose.

“Prices were up 0.5% from the previous month.

“Core prices, which strip out volatile food and energy prices, rose 3.3% over the year and 0.4% over the month.

“Egg prices increased more than 15%, which was the largest increase since June 2015. That accounted for about two-thirds of the total monthly increase of grocery prices.”