Surging inflation has eased in recent months, but more evidence is needed to show that price increases are coming down in the long term, Federal Reserve Chair Jerome Powell said Wednesday. (Photo by Yuki IWAMURA / AFP) (Photo by YUKI IWAMURA/AFP via Getty Images)
Prices rose half a percent in January, according to the latest consumer price index. That is up from a 0.1 percent decline in December, and five times the 0.1 percent increase in November.
The monthly uptick was in line with expectation, though the year-over-year rate came in higher than expected 6.4 percent, a marginal drop from a 6.5 percent rate in December.
Shelter (i.e. housing) contributed the largest share to the monthly increase, rising 0.7 percent.
Energy costs were also up across the board. The price of piped gas shot up 6.7 percent, while energy overall was up 2 percent after two straight months of declines.
Food prices, meanwhile, were up 0.5 percent. That is up from 0.4 percent in December, but still low relative to the last six months.
Used car prices also continued their steady decline, dropping 1.7 percent month-over-month and 11.6 percent year-over-year.
Despite the month-over-month drop, the annual rate has slowed for seven straight months.
From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
A month into Russia's invasion of Ukraine leading to rising gas prices and supply chain issues, the U.S. consumer is focusing on concerns over rising inflation. Jesse Wheeler, an economic analyst for Morning Consult, joined Cheddar News to talk about consumer confidence and the potential for a recession. "Consumer sentiment has really soured forecasters across the board, have lowered their expectations for real GDP growth for the U.S. this year, increased their expectations for interest rates and inflation," he said. "However, I don't think this necessarily means that we're headed for an outright recession anytime soon."
Catching you up on what you need to know on March 25, 2022, with Ukrainian forces retaking Kyiv, 300 deaths reported from the bombing of a theater used as a shelter in Mariupol, U.S. regulators ditch a climate review of natural gas projects, the 94th Academy Awards, and more.
