February 15, 2023
United States Inflation Rate increased 6.4% year over year in January 2023
The Consumer Price Index for All Urban Consumers increased 0.5% on a seasonally adjusted basis in January after rising 0.1% in December, according to a report released today by the U.S. Bureau of Labor Statistics. Before seasonal adjustment, all items index rose 6.4% over the previous 12 months.
With nearly half of the monthly all items rise coming from the index for shelter, food, gasoline, and natural gas were the other major contributors. The index for shelter was by far the biggest contributor to the monthly all items increase. With the food at home index growing by 0.4%, the food index grew by 0.5% over the course of the month. As all significant energy component indices rose over the course of the month, the energy index grew by 2.0%.
In January, the index for all goods excluding food and energy increased by 0.4%. The indexes for housing, auto insurance, leisure, clothing, home furnishings, and business operations all showed growth in January. Among the indexes that fell over the course of the month were those for used automobiles and trucks, healthcare, and airfare.
The 12-month growth in the all-items index was 6.4% for the year that ended in January; this was the lowest 12-month increase since the year that ended in October 2021. The last 12 months had a 5.6% increase in the all items index excluding food and energy, which is the smallest 12-month increase since December 2021. The food index grew 10.1% over the previous year, while the energy index increased 8.7% during the 12 months ending in January.
Food
The food index increased 0.5% in January while the food at home index increased 0.4%. Four out of the six main food group indexes from grocery stores have risen this month. Other food consumption at home increased by 0.7% in January. The index for fish, eggs, poultry, and meats grew 0.7% over the course of the month, while the index for eggs increased by 8.5%. In January, the index for non-alcoholic beverages jumped by 0.4% while the index for cereals and bakery goods increased by 1.0% over the month.
In contrast, the index for fresh vegetables and fruits declined 2.3% and 0.5%, respectively, over the course of the month. In January, there was no change in the index for dairy and associated products.
After growing by 0.4% in December, the food away from home index increased by 0.6% in January. Over the course of the month, the index for meals with limited service rose by 0.7%, and the index for meals with full service rose by 0.5%.
Over the previous 12 months, the index for food at home increased 11.3%. Over the course of the year ending in January, the index for breakfast cereals and bakery goods increased by 15.6%. The increases for the remaining significant food categories at grocery stores ranged from 7.2% for fruits and vegetables to 14.0% for dairy and related goods.
The index for food away from home increased by 8.2%. Over the previous 12 months, the index for full-service meals increased by 8.1%, while the index for limited service meals increased by 6.7%.
Energy
In January, the energy index grew by 2.0% while the gasoline index jumped by 2.4%. (Prices of gasoline increased by 3.2% in January before seasonal adjustment.) Natural gas prices jumped by 6.7% during the course of the month, and electricity prices rose by 0.5%.
Over the past 12 months, the energy index increased 8.7%. Over the period, the index for gasoline rose 1.5%. Over the past 12 months, the index for fuel oil increased by 27.7%, whilst the indexes for electricity and natural gas increased by 11.9 and 26.7%, respectively.
All items less food and energy
In January, the index for all goods excluding food and energy increased by 0.4%. The shelter index grew 0.7% during the course of the month, continuing its upward trend. Since December, both the rent index and the owners’ equivalent rent index have increased by 0.7%. In January, the index for lodging away from home rose 1.2%.
The monthly increase in the index for all products except food and energy was mostly driven by the shelter index, while the other components varied between gains and losses. The index for auto insurance, which grew 1.4% over the course of the month, as well as the indexes for entertainment and clothing both saw increases of 0.5% and 0.8%. In January, both the communication and operations indexes increased: the former by 0.4% and the latter by 0.3%.
Physicians’ services index down 0.1% in January, contributing to a 0.4% reduction in the medical care index. Both the hospital services index and the prescription medicine index saw monthly increases of 0.5% and 2.1%, respectively.
The index for used vehicles and trucks, which decreased 1.9% in January and continued a previous declining trend, is among the other indexes that fell over the course of the month. Over the course of the month, the airline fare index decreased by 2.1%.
Over the previous 12 months, the index for all products minus food and energy increased by 5.6%. Nearly 60% of the overall increase in all categories, excluding food and energy, was accounted for by the 7.9% increase in the shelter index over the previous year. Other indexes that have seen significant growth in the past year include home operations and furnishings (+5.9%), health care (+3.1%), leisure (+4.8%), and new cars (+5.8%).
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