The year-over-year CPI is hanging in there. It fell in January by only one tenth of a percentage point, from 6.5% to 6.4%. Inflation rose in January by 0.5%, registering the largest increase in the last quarter, according to data released by the Bureau of Labor Statistics.
The prices of automobiles, fuel oil and health care services are the most affected. Car rates, which had already been reduced by almost 10% in 2022, decreased by another 1.9% in just one month. Fuel oil decreased by 1.2% and health care services went down by 0.7%.
However, some service prices went up. According to data released by the Bureau of Labor Statistics, piped gas rose by 6.7% in January, compared to December when it rose by 3.5%. Gasoline prices also went up by 2.4%. In addition, food prices rose 0.5%. Along with this, clothing and shelter rates also increased and are up 0.7% in January.
The price of eggs is particularly concerning. In the last year, eggs have increased in price by almost 70.1%. The Bureau of Labor Statistics puts the rate for this month alone at 8.5%.
The Fed still needs to remain vigilant
Chris Beauchamp, chief market analyst at trading platform, IG Group told QZ that this data has yet to improve. According to Beauchamp, the month-over-month increase is not alarming for the market:
US inflation is still resolutely sticky, and it shows the Fed still has more to do. But the numbers were broadly in line with what markets had been expecting, and were certainly not enough to frighten the horses too much. The muted reaction should not be dismissed—inflation still has the power to scare, but this was not the reading to do it. If we get another barnstormer of a jobs number, then markets will go back to fretting about more sustained inflation, but for now calm reigns.