Consumer Price Index reports increase in inflation

Washington — It’s not just egg prices that are rising. The U.S. Bureau of Labor Statistics’ Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% on a seasonally adjusted basis in January, following a 0.4% increase in December. According to the Bureau, the all items index increased 3% before seasonal adjustment over the past 12 months. The report shows that the index for shelter rose 0.4% in January, accounting for nearly 30% of the monthly all items increase. The energy index rose 1.1% over the month, as the gasoline index increased 1.8%. The index for food also increased in January, rising 0.4% as the index for food at home rose 0.5% and the index for food away from home increased 0.2%.

CNBC reported that markets tumbled following the news with futures tied to the Dow Jones Industrial Average sliding more than 400 points. CNBC’s Jeff Cox noted that the report comes a day after “Fed Chair Jerome Powell indicated the central bank could be on hold for a while” with regard to interest rates. According to Cox, “Powell told members of the Senate Banking Committee that he thinks the Fed doesn’t need to be in a rush to lower rates as it evaluates progress on inflation and as President Donald Trump continues plans to levy tariffs against imports.”