According to the latest data from the US Labor Department, the consumer price index (CPI) jumped 7.5% compared to the year-ago figures, following a 7% increase reported in December. The wide inflation gauge rose 0.6% in January from a month earlier.
To the surprising increase contributed fuel oil, which rose the most in January – 9.5% as part of a 46.5% year-over-year increase. Overall, the energy costs gained 0.9% for the month and 27% for the year.
Shelter costs, which make up approximately a third of the total CPI number, increased 0.3% month-over-month, marking the smallest gain since August 2021. However, the segment has risen 4.4% over the past year and could impact future inflation readings.
The significant increase represents a substantial hit to Americans’ paychecks as the latest inflation reading is the highest since 1982, and the Federal Reserve is getting ready to raise interest rates.
Following the report, stock market futures declined, while the 10-Year US Treasury Bond jumped above 2%.
Sources: Bloomberg.com, forexfactory.com