Consumer prices defied naysayers in January as increases came in below analysts’ predictions, according to Consumer Price Index (CPI) data released Friday by the U.S. Bureau of Labor Statistics (BLS).
Both the overall CPI and its “core” component, which excludes the volatile food and energy sectors, mostly came in either below, or at, analysts’ expectations:
- Year-Over-Year: 2.4%, down from 2.7% in December and below 2.5% expectations.
- Year-Over-Year Core: 2.5%, down from 2.6% in December, matching 2.5% expectations.
- Month-to-Month: 0.2%, down from 0.3% in December and below 0.3% expectations.
- Month-to-Month Core: 0.3%, up from 0.2% in December and matching 0.3% expectations.
The index for shelter rose 0.2% in January and was the largest factor in the all-items monthly increase. The food index increased 0.2% over the monthm as did the food at home index, while the food away from home index rose 0.1%. These increases were partially offset by the index for energy, which fell 1.5% in January.
The energy index decreased 0.1% for the 12 months ending January. The food index increased 2.9% over the last year.
The impact of President Trump’s tariff policies “has been less than initially feared,” providing “relief to those concerned about how sticky price pressures may prove to be,” The New York Times reports.
“We’re just not seeing the pass-along” tariff-fueled cost increases expected, “Maybe, we’re past that,” according to CNBC:
“‘This is great news on inflation,’ said Heather Long, chief economist at Navy Federal Credit Union. ‘Inflation fell to the lowest level since May and key items such as food, gas and rent are cooling off. This will provide much needed relief for middle class and moderate-income families.’”
