US January CPI up 0.2 pct, core CPI up 0.3 pct, fastest core gain since June

BY

Underlying inflation pressures in the US rose by more than anticipated in January, as the core inflation rate, which does not include volatile food and energy prices, increased at its fastest pace in more than half a year, the Labor Department said today.

Overall prices rose 0.2 pct, twice as fast as the 0.1 pct increase economists had expected. Core prices rose 0.3 pct in January, slightly faster than the expected gain of 0.2 pct and the largest gain since June.

Core inflation over the past three months has risen at a 2.0 pct seasonally adjusted annualised rate, the fastest three month gain since October, when core inflation had risen at a three month annualised pace of 2.3 pct. Core inflation rose 1.6 pct in the three months leading up to December and 1.8 pct in the three months leading up to November.

Core inflation has risen an unadjusted 2.7 pct in the past twelve months, the fastest gain since October, when it also rose 2.7 pct in the prior twelve months.
Overall inflation has risen an unadjusted 2.1 pct in the 12 months leading up to January.

Energy prices fell 1.5 pct in January after rising 4.2 pct in December. Still, energy prices have risen at an 10.1 pct annual rate over the past three months.

Food prices rose 0.7 pct in January after falling 0.1 pct in December.

Apparel prices rose 0.2 pct in the month, while transportation prices fell 0.8 pct. Housing prices rose 0.2 pct while medical prices rose 0.8 pct in January.
Real average weekly earnings fell 0.3 pct in January