Consumer prices rose faster than expected in January, as Joe Biden left the Oval Office 20 days into the month and Donald Trump entered for a second term.
On Wednesday, the U.S. Bureau of Labor Statistics (BLS) released its monthly Consumer Price Index (CPI) report, which shows that CPI increased a seasonally-adjusted 0.5% from December and (unadjusted) 3.0% over the previous 12 months. January’s results mark an uptick in inflation from December’s 0.4% month-to-month and 2.9% year-over-year increases.
“Core” inflation (excluding the volatile food and energy indexes) increased 0.4% from December and 3.3% from January 2024.
Changes in major CPI components include:
- Shelter: up 0.4% from December, up 4.4% from January 2024.
- Energy up 1.1% from December, up 1.0% from January 2024.
- Gasoline (all types): up 1.8% from December, down 0.2% from January 2024.
- Fuel oil: up 6.2% from December, down 5.3% from January 2024.
- Food: up 0.4% from December, up 2.5% from January 2024.
The 0.4% rise in the cost of shelter in January accounted for nearly thirty percent of the month-to-month increase for all items combined.
The food-at-home index rose 0.5% over the month as four of the six major grocery store food group indexes increased. Over the last 12 months, the cost of food at home rose 1.9%.
The index for meats, poultry, fish, and eggs rose 1.9% over the month, as the index for eggs jumped 15.2% - the largest increase in the eggs index since June 2015. The cost of eggs accounted for about two-thirds of the total monthly food-at-home increase.
Job Creators Network CEO Alfredo Ortiz attributed January’s increase in the inflation rate to the previous administration and expressed confidence that the pressure on prices will ease going forward:
"The last inflation reading of Biden's presidency demonstrates one final time his administration's failure to get a handle on inflation. Prices rose by 21% under his administration and doomed his presidency. Inflation is once again moving in the wrong direction and taking a bigger bite out of Americans' wallets.
“The cost of living crisis facing ordinary Americans and small businesses is a result of Biden’s reckless government spending and anti-energy policies that dilute the dollar and drive up the cost of doing business.
"The Trump administration is already taking steps to reverse runaway prices by unleashing American energy and reducing unnecessary spending. And the Republican Congress is moving forward on a spending cut and permanent tax cut bill that will provide lasting relief.”
“For American consumers and small businesses, cost control can't come soon enough," Ortiz said.
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