The Consumer Price Index for All Urban Consumers (CPI-U) increased by 0.5 percent in January on a seasonally adjusted basis, after a 0.1 percent increase in December, according to the US Bureau of Labor Statistics. The all-items index increased by 6.4 percent over the past 12 months before seasonal adjustment. The rise in all items index was largely attributed to the increase in the shelter index, which accounted for almost half of the monthly all items increase, along with the food, gasoline, and natural gas indexes. The food index increased by 0.5 percent over the month, with the food at home index rising by 0.4 percent. The energy index increased by 2.0 percent over the month, as all major energy component indexes rose.
The index for all items less food and energy rose by 0.4 percent in January, with categories such as shelter, motor vehicle insurance, recreation, apparel, and household furnishings and operations indexes showing an increase. However, the indexes for used cars and trucks, medical care, and airline fares decreased over the month.
Over the past 12 months, the all-items index increased by 6.4 percent, which was the smallest 12-month increase since the period ending October 2021. The all items less food and energy index rose by 5.6 percent over the last 12 months, which was the smallest 12-month increase since December 2021. The energy index increased by 8.7 percent for the 12 months ending in January, and the food index increased by 10.1 percent over the last year. These trends indicate that inflation is still present in the economy, though the rate of increase has slowed down a bit.