The Bureau of Labor Statistics released data on Tuesday morning which showed that consumer inflation in the United States has gotten worse. The Consumer Price Index showed that there was a 0.5 percent increase from December to January. This means that there was a 6.4 percent annual advance, which was higher than what was expected.
Inflation Accelerates Past Expectations Again https://t.co/q22D3TtBYt
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The main CPI number, which doesn’t include food and energy, increased by 0.4 percent for an annual increase of 5.6 percent. This was also higher than expected. It’s clear that inflation is still going up for the three things that all Americans need most: shelter, food, and energy. The food index had inflation of 10.1 percent in the last 12 months while the energy index rose 8.7 percent.
According to the most recent jobs report, wages only grew by 0.3 percent in January, and 4.4 percent over the last 12 months. This means that Americans’ incomes are not keeping up with inflation, which has increased by two percent over the same time period. Prices for common necessities have also gone up, with the cost of eggs increasing by 70.1 percent, airline fares up 25.6 percent, pet food 15.1 percent, and household paper products 12.9 percent in the last year and piped utility gas service increasing 26.7 percent in the last 12 months.
The Federal Reserve is expected to continue to raising interest rates at a faster pace in order to bring inflation down. Despite rates being at their highest level since the 2007-08 financial crisis, the Fed’s recent rate hikes have not had the desired effect of lowering inflation. The next Fed meeting is scheduled for March, and February’s CPI and employment reports will be released before then.
Inflation is a top concern for a lot of Americans and there’s no sign that it will go away anytime soon. The latest CPI read for January is a reminder that prices for common necessities are still rising and that wages are not keeping up with inflation. It’s important for individuals to stay informed about the latest economic news and to be aware of how it may affect their personal finances.
The preceding article is a summary of an article that originally appeared on Townhall