DORAL, FL – U.S. consumer price index rose 7.5% in the 12 months ending January 2022, not adjusted for seasonal swings, according to the Bureau of Labor Statistics.
This rise is considered to be the steepest annual price increase since February 1982, and just in January, prices rose 0.6%, including seasonal adjustments, which is the same rate as in December.
Leaving out food and energy, usually more volatile, prices increased by 6% between January 2021 and January 2022, marking the largest increase since August 1982. Food prices rose 7% over the same period, while energy prices rose 27%, led by fuel oil and gasoline prices.
Now, economists and experts hope inflation slow downs in the coming months when fiscal and monetary stimulus fades, although January was visibly not the start of that expected trend.
But what is people paying more money for? It was revealed the U.S. consumer price index was influenced for housing, furniture, used cars and healthcare.
Vehicle costs were flat for new models and up 1.5% for used cars and trucks in January. The two categories have represented respective increases of 12.2% and 40.5% over the past 12 months.
Shelter costs, on the other hand, increased 0.3% on the month, which is the smallest gain since August 2021 and slightly below December’s rise. However, the category is up 4.4% over the past year and could keep inflation readings high in the long term.
Food costs rose 0.9% for January, compared to just 0.5% in December, and are up 7% over the past year. Almost all grocery prices increased, with only nonalcoholic beverages staying the same. Energy prices also rose 0.9% last month, led by electricity costs.
According to the Federal Reserve, the January report will likely not change much. The central bank already announced it will raise interest rates for the first time since Covid started at its March meeting.