The US consumer price index jumped 7.5% last month compared with January 2021, as inflationary pressures continue to hamper rapid economic recovery.
- Data released by the Bureau of Labor Statistics revealed CPI increasing past its prior 40-year high of 7% on an annual basis posted in December, topping economists’ estimates.
- On a monthly basis, CPI grew by 0.6% last month, a higher surge than projected by economists.
- The persistence of high inflation has already pushed the Fed to hasten its schedule for tightening monetary policy, with the first interest hike set to be approved next month.
- The index for food, electricity, and shelter were the largest drivers of the increase in the consumer price index. Food rose by 0.7% in January after a 0.5 % increase in December.
The energy index rose 0.9% over the month, with the increase in the price of electricity being partially offset by falling gasoline and natural gas indexes.
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Source: US Bureau of Labor Statistics