High inflation persisted in the month of January. The Consumer Price Index (CPI) showed inflation rose 0.5 percent for the month and 6.4 percent over the year. Both were higher than some economists’ expectation. Experts predicted 0.4 percent for the month and 6.2 percent year-over-year. Many are calling on the Federal Reserve to do more to slow inflation. It is being categorized as a “mixed report leaning negative.”
Food costs rose 0.5 percent, up from 0.4 percent the previous month and 10.1 percent on the year. Restaurant meals went up 0.6 percent for the month with a 8.2 percent increase over the year. Energy was also an increase factor, as it inflated by 2 percent and 8.7 percent over the year. At the same time, people’s purchase power diminished. Average hourly earnings fell 0.2 percent for the month and 1.8 percent for the year.
Egg prices, in particular, rose a significant amount, up 8.5 percent over the month with a 70.1 percent increase over the past year.
The full CPI report can be found here.
