Inflation Rises Sharply in January, Food Prices Accelerate
By The Consumer Price Index (CPI), a measure of inflation, rose 6.4% year-over-year in January, a slight slowdown from the 6.5% increase in December.[0] On a monthly basis, inflation rose 0.5%, the sharpest one-month gain since last June, the Bureau of Labor Statistics (BLS) said.[1] Month-on-month, core inflation, subtracting out volatile food and energy prices, was 0.4%, and yearly it was 5.6%.[2]
The index for shelter was the most significant factor of the monthly all items increase, comprising almost half of the total increase. Other contributing indexes included those for food, gasoline, and natural gas.[3] The food index saw a 0.5 percent growth in the span of one month with the food at home index going up by 0.4 percent. All major energy component indexes rose during the month, resulting in a 2.0 percent increase in the energy index.[4]
In the report, it was noted that grocery prices rose 0.5 percent in January which resulted in a year-over-year inflation rate of 10.1 percent. The cost of eating out, or “the price of food away from home” increased by 0.4 percent in the past month, resulting in an annual inflation rate of 11.3 percent.[5]
Once again, inflation has surpassed the Reserve Bank of India's (RBI) limit of acceptance, spiking to
On Monday, the government's data release showed that, after a period of two months of relief, headline retail inflation had once more exceeded the Reserve Bank of India's upper tolerance limit in January, rising to 6.52%. This was due to a surge in both fuel and food prices.
In January, the cost of pre-owned cars and trucks decreased by 1.9%. Used vehicle prices have been decreasing for several months, and are currently 11.6 percent lower than they were in January 2022.
At their March decision, the Federal Reserve is very likely to raise interest rates by another quarter of a percentage point. However, the decisions for subsequent meetings will be contingent on the data that is collected between now and the next set meeting in May.[6] The financial markets are predicting that the rate will increase by a quarter percentage point twice more in 2021, first in March, then in May, and potentially again in either June or July.[7]
Four of the six major grocery store food group indexes showed a month-over-month increase in prices for food consumed at home, with the index for cereals and bakery products rising by 1% and the index for 0 increasing by 0%.[8]
0. “Year-Over-Year Inflation Slips Again, Real Wages Fall” SHRM, 14 Feb. 2023, https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/january-2023-consumer-price-index.aspx
1. “Inflation eases in January but economists project a bumpy road ahead to reach the Federal Reserve's 2% target” Fox Business, 14 Feb. 2023, https://www.foxbusiness.com/personal-finance/january-cpi-inflation-eases-federal-reserve-rate-hike
2. “Higher Food, Commodity Prices Push Inflation to 21.82%” THISDAY Newspapers, 16 Feb. 2023, https://www.thisdaylive.com/index.php/2023/02/16/higher-food-commodity-prices-push-inflation-to-21-82/
3. “Inflation was still hot in January, but some prices are cooling off” CNN, 17 Feb. 2023, https://www.cnn.com/2023/02/14/economy/cpi-inflation-january/index.html
4. “CPI for all items rises 0.5% in January as shelter increases” – The Kentucky Association of Counties, 14 Feb. 2023, https://www.kaco.org/articles/cpi-for-all-items-rises-05-in-january-as-shelter-increases/
5. “Gas prices are up, used cars are down: five inflation movers” Houston Chronicle , 15 Feb. 2023, https://www.houstonchronicle.com/business/article/inflation-movers-17784441.php
6. “Inflation in January was both hot and cold: Morning Brief” Yahoo News, 15 Feb. 2023, https://news.yahoo.com/inflation-in-january-was-both-hot-and-cold-morning-brief-110032297.html
7. “January CPI Report: What the Experts Are Saying About Inflation” Kiplinger's Personal Finance, 14 Feb. 2023, https://www.kiplinger.com/investing/january-cpi-report-what-the-experts-are-saying-about-inflation
8. “Egg prices continue to climb at slower pace alongside other food consumed at home, CPI reveals” FoodNavigator-USA.com, 14 Feb. 2023, https://www.foodnavigator-usa.com/Article/2023/02/14/egg-prices-continue-to-climb-at-slower-pace-alongside-other-food-consumed-at-home-cpi-reveals
