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Thursday, February 13th, 2025

Consumer prices rise 0.5% in January, higher than expected as annual rate rises to 3%

Author:     Jeff Cox
Source:     CNBC
Publication Date:     Wed, Feb 12 2025 | 8:31 AM EST
 Link: Consumer prices rise 0.5% in January, higher than expected as annual rate rises to 3%
Stephan:  
You have almost certainly noticed it. My wife and I certainly have. “emperor” Trump promised prices would go down if he were elected. They have, in fact, gone in the absolute opposite direction. And because of Trump’s ignorance and bullying they are going to go much further up. We will be in a different world by June because Trump’s lackeys in Congress will do nothing to stop his poor judgment from becoming America’s reality.
Credit: CNBC

Key Points

  • The CPI accelerated a seasonally adjusted 0.5% for the month, putting the annual inflation rate at 3%, both higher than expected. The core CPI ran at 0.4% and 3.3% respectively, also above forecast.
  • Shelter costs continued to be a problem for inflation, rising 0.4% on the month. Food prices jumped 0.4% and energy prices climbed 1.1% as gasoline prices increased 1.8%.
  • Markets largely expect the Fed to stay on hold for an extended time and pushed the next rate cut probability out to September following the CPI report.

Inflation perked up more than anticipated in January, providing further incentive for the Federal Reserve to hold the line on interest rates.

The consumer price index, a broad measure of costs in goods and services across the U.S. economy, accelerated a seasonally adjusted 0.5% for the month, putting the annual inflation rate at 3%, the Bureau of Labor Statistics reported Wednesday. They were higher than the respective Dow Jones estimates for 0.3% and 2.9%. The annual rate was 0.1 percentage point higher than December.

Excluding volatile food and energy prices, […]

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