Feb. 13 (UPI) — Inflation increased more than expected in January as the cost of shelter continued to eat up more money from consumers, the Bureau of Labor Statistics said on Tuesday.
The department said the consumer price index increased 0.3% from December to January and 3.1% from this point last year. Dow Jones economists predicted increases of 0.2% for the month and 2.9% for the year.
The costs for shelter drove up the overall cost of the index, jumping 0.6% for the month. Food also saw a significant increase of 0.4% in January. The cost of energy helped level off those increases with a drop of 0.9% in the first month of the year. Gasoline prices were down 14.2% from this time in 2023.
When the more volatile food and energy prices are excluded, measures that are closely watched by the Federal Reserve, the CPI jumped to 0.4% for January and up 3.9% at the same time in 2023. Analysts predicted 0.3% and 3.7%, respectively.
“Indexes which increased in January include shelter, motor vehicle insurance and medical care,” the Labor Department said. “The index for used cars and trucks, and the index for apparel were among those that decreased for the month.”
In December, the Bureau of Labor Statistics revised down numbers in the consumer price index from previously reported, cutting the original figure to an increase of 0.2% from the original 0.3%.
In a statement reacting to the report, President Joe Biden pointed to strong growth and employment numbers, saying that “there’s still work to do to lower costs” while noting inflation was down overall by two thirds from its peak.
He also pointed to his administration’s efforts to “lower costs for middle class families — from the cost of insulin and other prescription drugs, to eliminating hidden junk fees that companies use to rip you off, to calling on corporations to pass savings on to consumers instead of hiding price increases by shrinking package sizes.”
Speaking during a press briefing Tuesday morning, White House press secretary Karine Jean-Pierre said the administration has “concerns” regarding inflation but said that while data showed reduction in rental inflation it takes time for the CPI to reflect those results.
“We look at the trend, we see how the economy is moving and we don’t focus on one-month data,” she said.
