Annual inflation in the U.S. cooled last month yet remained elevated, according to the Associated Press, in the latest sign that the pandemic-fueled price surge is only gradually and fitfully coming under control.
Today’s report from the Labor Department showed that the consumer price index rose 0.3% from December to January, up from a 0.2% increase the previous month. Compared with a year ago, prices are up 3.1%.
That is less than the 3.4% figure in December and far below the 9.1% inflation peak in mid-2022, yet the latest reading is still well above the Federal Reserve’s 2% target level.
Excluding the volatile food and energy categories, so-called “core” prices climbed 0.4% last month, up from 0.3% in December and 3.9% over the past 12 months. Core inflation is watched especially closely because it typically provides a better read of where inflation is likely headed. The annual figure is the same as it was in December.
Inflation has plummeted since pandemic-related supply disruptions and significant government aid sent it soaring three years ago, and a raft of forward-looking data suggests that inflation will continue to cool.
