U.S. inflation accelerated in January despite efforts by the Federal Reserve to bring tame price hikes with higher interest rates.
The consumer price index, which measures what consumers pay for goods and services, rose 0.5 percent in January compared with a month earlier. The index had increased by one-tenth of a point in December after rising two-tenths in November.
The previous months were revised up from earlier reports that had the index falling 0.1 percent in December and rising 0.1 percent in November.
Over the last 12 months, the consumer price index is up 6.4 percent, down from 6.5 percent in December and 7.1 percent in November.
Economists had forecast the index rising 0.4 percent for the month and 6.2 percent from a year ago, according to Econoday.
Core prices, a measure that excludes food and energy prices, rose 0.4 percent compared with December. Compared with a year ago, core CPI is up 5.6 percent. Bother were slightly higher than forecast. In December, core CPI was up 0.3 percent for the month and 5.7 percent over 12 months.
The gauge of food prices rose 0.5 percent, with grocery prices rising 0.4 percent. Compared with a year ago, food at home prices are up 11.3 percent.
The energy index rose two percent compared with the prior month. Gasoline prices rose 2.4 percent. Compared with a year ago, energy prices are up 8.7 percent and gasoline prices are up 1.5 percent.
The index for shelter was by far the largest contributor to the monthly rise in inflation, accounting for nearly half of the increase. Shelter prices were up 0.7 percent and are up 7.9 percent for the year.
Core goods—excluding food and energy—rose 0.1 percent and are up 1.4 percent from a year ago. Prices were up for new cars and trucks, increasing 0.2 percent compared with a month earlier and 5.8 percent from a year ago. Apparel prices rose 0.8 percent month-to-month and 3.1 percent year-over-year. Used car prices fell 1.9 percent and are down 11.6 percent from a year ago.
Core services, a measure that excludes energy services, rose 0.5 percent in January and are up 7.2 percent from year ago. The index for recreation rose 0.5 percent in January and is up 4.8 percent compared with a year ago. Medical care prices are up 3.1 percent compared with a year ago but declined 0.4 percent in January.
Prices of household furnishings and operations are up 5.9 percent compared with a year earlier after rising 0.3 percent in January.
