US inflation rises faster than thought in January

13th Feb 2024 11:26

(Sharecast News) - Inflation rose at a faster-than-expected rate in January, according to the Bureau of Labor Statistics, with shelter prices accounting for much of the increase.

The US consumer price index rose by 3.1% year-on-year to 308.417 in January, easing from a 3.4% increase in December but exceeding market expectations for a reading of a 2.9% advance, what would have been the first reading lower than 3% seen since April 2021

On a monthly basis, headline inflation increased 0.3%, ahead of expectations for a print of 0.2%.

Excluding volatile food and energy prices, core CPI rose 0.4% last month and was 3.9% from higher on the year. Forecasts had been for reading of 0.3% and 3.7%, respectively.

Shelter prices, which make up roughly one-third of the CPI weighting, accounted for much of the increase, rising 0.6% on the month, contributing more than two-thirds of the headline increase, while food prices were also higher, up 0.4% on the month.

Energy, on the other hand, helped offset rises seen elsewhere, down 0.9% principally due to a 3.3% drop in gas prices.

Reporting by Iain Gilbert at Sharecast.com