Consumer prices experienced a notable increase in January 2025, according to the latest report from the U.S. Bureau of Labor Statistics. The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.5 percent in January, a climb from the 0.4 percent increase recorded in December. Over the past 12 months, the all items index has increased by 3.0 percent before seasonal adjustment, a slight uptick from the 2.9 percent increase reported in December.
Key Drivers of Inflation
Several factors contributed to the rise in January’s CPI. Shelter, energy, and food were significant drivers.
- Shelter: The index for shelter rose 0.4 percent in January, accounting for nearly 30 percent of the monthly all items increase.
- Energy: The energy index saw a substantial 1.1 percent increase over the month, fueled by a notable 1.8 percent rise in the gasoline index.
- Food: The food index also contributed, rising 0.4 percent, with food at home increasing by 0.5 percent and food away from home rising 0.2 percent. Notably, the index for eggs jumped 15.2 percent, the largest increase since June 2015.
Other Notable Changes
Beyond the major categories, several other indexes saw increases in January:
- Motor vehicle insurance (+2.0%)
- Recreation (+1.0%)
- Used cars and trucks (+2.2%)
- Medical care (+0.2%)
- Communication
- Airline fares
However, some indexes experienced declines, including apparel (-1.4%), personal care, and household furnishings and operations.
12-Month Trends
Looking at the year-over-year figures:
- The all items index rose 3.0 percent.
- The all items less food and energy index increased 3.3 percent.
- The energy index increased 1.0 percent.
- The food index increased 2.5 percent.
Looking Ahead
The Consumer Price Index for February 2025 is scheduled to be released on Wednesday, March 12, 2025, at 8:30 a.m. (ET).
