The Bureau of Labor and Statistics (BLS) released January’s consumer price index report Tuesday, noting inflation currently sits at 3.1%.
“Overall prices slowed down to 3.1% in January from 3.4% in December over the previous 12 months. Core inflation, which excludes food and energy items, remain unchanged,” said America’s Credit Unions’ Dawit Kebede. “On a monthly basis, both headline and core inflation came in slightly higher than expected, with shelter contributing for two-thirds of the increase.”
Kebede noted that while rent prices appear to be decreasing, the BLS’s housing price methodology trails behind market trends. Additionally, lodging away from home and insurance costs increased in January.
“The Federal Reserve will find the hotter than expected monthly inflation for core prices a bump in the fight against inflation. We may see changes in the subsequent months as housing inflation adjusts as expected. However, the Federal Reserve will need more months of data indicating inflation is convincingly turning around before making a change in policy direction,” Kebede concluded.
