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Inflation, as measured by the Consumer Price Index for all Urban Consumers (CPI-U), rose 3.1 percent nationwide in the 12 months ending January ’24. On a monthly basis, U.S. consumer prices rose 0.3 percent. 

Core inflation, which excludes the volatile food and energy categories, rose 0.3 percent in January and 3.9 percent over the preceding 12 months. With core inflation well above the Federal Reserve’s 2.0 percent target, the bank is unlikely to lower interest rates before mid-year.

Restaurant meals, motor vehicle insurance, motor vehicle repairs, shelter, and the other goods and services category saw the greatest year-over-year price increases. Food at home (i.e. groceries) and electricity saw modest increases. Utility gas, household furnishings, used cars and trucks, gasoline, and airfares saw price declines. 

Owners’ equivalent rent, i.e., how much it would cost someone to rent a home that they own, rose 6.2 percent since January ’23 and 0.6 percent since December ’23. The hefty increases suggest core inflation remains sticky.

The next release of national CPI data will be on Tuesday, March 12, 2024.

Prepared by Greater Houston Partnership Research

Patrick Jankowski, CERP
Chief Economist
Senior Vice President, Research
pjankowski@sikedz.com

Leta Wauson
Research Director
lwauson@sikedz.com