03/28/2024

Consumer Prices Jump in Sign of Firming Inflation

The consumer-price index, which measures what Americans pay for everything from salad dressing to fares on public transportation, rose a seasonally adjusted 0.5% in January, the Labor Department said Wednesday. Excluding the volatile food and energy categories, so-called core prices rose 0.3%.

That was above economists’ expectations for a 0.4% rise in consumer prices, and 0.2% higher core prices.

From a year earlier, inflation also rose more than expected in January. Overall prices rose 2.1%, ahead of the 1.9% increase economists expected, while core prices rose 1.8% on the year, outpacing an expected 1.7% increase.

. . . The increase in inflation last month was largely driven by higher prices for gasoline, shelter costs like rent, medical care, food and apparel.

Wednesday’s report showed wage inflation was broadly muted. Real average weekly earnings fell a seasonally adjusted 0.8% in January and were up 0.4% from January 2017.

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