Housing, Energy, and Prices Drive Up the Monthly Inflation Rate

According to the latest consumer price index, prices increased by 0.5% in January. This is a rise from the 0.1 percent fall in December and the five-fold increase in November.

The monthly increase was in line with expectations, but the year-over-year rate was higher than anticipated at 6.4%, a little decrease from December’s rate of 6.5%.

*Image source: cheddar.com

Shelter (i.e., housing) contributed the most to the monthly rise, with an increase of 0.7%.

Additionally, energy expenses rose across the board. The price of piped gas increased by 6.7%, while the overall cost of energy increased by 2% after two consecutive months of reduction.

Meanwhile, food costs increased by 0.5 percent. This is an increase from December’s rate of 0.4% but remains low compared to the previous six months.

*Image source: Unsplash

Used vehicle prices also maintained their steady descent, down 1.7% month-over-month and 11.6% year.

Despite the monthly decline, the annual rate has been decreasing for seven consecutive months.