“Inflation flooded the food and energy sectors once again in January, as the Consumer Price Index (CPI) report released Thursday reflected a 7.5% annual gain in prices in January, the fastest rise since Y 1982. The figure came in higher than estimates“–Paul Ebeling
Even though prices rose overall, a closer look at the report price shows that increases were not equally distributed throughout all sectors.
Much of January’s rise in the CPI was from food and electricity prices, but increases were broad-based across the consumer price basket, prices like shelter and healthcare services grew faster than the Fed’s target in the month.
Energy prices experienced the largest percentage gainer out of all sectors, with total energy prices rising 27% year-over-year in January 2022. Crude Oil prices ran up 9.5% during the month as part of a 46.5% year-over-year increase.
While in total, prices across all sectors rose 0.6% in January, seasonally adjusted, food and used vehicle price increases drove much of the non-energy inflation.
Food prices rose by .9% in January 2022 (representing a 7% increase over the last 12-month period), while used vehicles rose 1.5% last month (and 40.5% year-over-year).
Medical care commodities experienced a similarly high level of inflation, increasing .9% on the month and 1.4% on the year. Clothing and apparel rose 1.1% during the month and is up 5.3% on an annual basis. New vehicle prices remained flat after 1.2% in December.
Plus, shelter prices rose .3% last month, representing the second consecutive month of decelerating inflation in the sector. Gasoline prices actually declined nationally by .8%, while utility nat gas services fell by .5%.
Have a prosperous day, Keep the Faith!