The annual inflation rate in the United States accelerated to 3% this January, with the consumer price index (CPI) rising by 0.5% on a seasonally adjusted basis. Notably, when excluding the often volatile categories of food and energy, the CPI still rose by 0.4% for the month. The Bureau of Labor Statistics (BLS) highlighted that the 12-month inflation rate, excluding these volatile components, stood at 3.3%.
Food prices saw a significant rise in January, increasing by 0.4%. Eggs were a notable driver of this increase, with prices soaring by 15.2% for the month and marking a staggering annual rate increase of 53%—the highest since June 2015. Egg prices alone accounted for approximately two-thirds of the increase in food-at-home prices.
Shelter costs also added pressure to inflation, climbing by 0.4% in January. These costs represented about 30% of the overall increase in consumer prices, underscoring their persistent impact on inflationary trends. The annual core rate experienced a slight uptick, rising by 0.1 percentage point from December figures.
Market reactions to the inflation data were swift and significant. Bond yields rose sharply upon the release of the report, reflecting investor concerns over potential interest rate adjustments. Additionally, futures tied to the Dow Jones Industrial Average tumbled more than 400 points, indicating a jittery response from financial markets.