Consumer prices in the United States reversed the deflationary trend in January, led by rises in the price of gasoline. When gas and food prices are excluded, prices remain unchanged in the month.
The seasonally-adjusted U.S. Consumer Price Index saw a 0.3% month-over-month jump in the all-items index for January, in-line with expectations, while core inflation came in up 0.2% against expectations of a 0.1% rise, according to data released by the U.S. Labor Department on Friday.
The prior month's data saw the all-items index fall 0.8%, which was revised from -0.7%, and core inflation come in flat.
The annual core rate, which excludes volatile food and energy components, dropped to +1.7% from the previous month's +1.8% level. January's level is below the Fed's unofficial 2.00% target rate.
Energy prices grew 1.7% in January after several months of decline. Compared to last year, energy prices are down 20.4%. The monthly drop was driven by a 6.0% increase in gasoline prices.
Prices for fuels & utilities fell 0.7% in the month but rose 5.1% on the year.
Food and beverages grew 0.1% on the month and are up 5.2% year-over-year.
The heavily-weighted commodities component grew 0.5% from the previous month, and are down 4.0% on the year. Over the past three months, commodity prices have fallen at an annualized rate of 20.8%.
Owners' equivalent rent ticked up 0.3% from the previous month and is now 2.2% higher than the same period last year.
The index for housing showed no growth in the month but rose 2.2% on the year.
Services grew a slight 0.1% increase in January. Over the year, prices for this component have moved up 2.8%.
Prices for apparel grew 0.3% in the month, following a 0.6% drop in the prior month. The annual rate of change is -0.9%.
Transportation costs grew 1.3% in the month, while annually the index declined 12.6%.
By Megan Ainscow and edited by Stephen Huebl
©CEP News Ltd. 2009