CPI report

Consumer prices rose 0.5 percent in January and 6.4 percent annually, according to Labor Department's consumer price index released Tuesday, a jump in ...

[Consumer Price Index](https://thehill.com/tag/consumer-price-index/) [inflation](https://thehill.com/tag/inflation/) [Michelle Bowman](https://thehill.com/people/michelle-bowman/) [Finance](https://thehill.com/finance/) [Finance](https://thehill.com/finance/) [Technology](https://thehill.com/policy/technology/) [Finance](https://thehill.com/finance/) [See All](https://thehill.com/finance/) On the year, grocery prices are up 11.3 percent, energy prices are up 8.7 percent and housing costs are up 7.9 percent, putting a dent in Americans’ finances. The price of used cars is one of the few areas where inflation is easing, with prices dropping 11.6 percent annually after skyrocketing in previous years. Food prices rose 0.5 percent in January, while housing costs rose 0.7 percent, making up for the bulk of the increase. “While there are costs and risks to tightening monetary policy to lower inflation, I see the costs and risks of allowing inflation to persist as far greater,” Bowman said. Consumer prices rose 0.5 percent in January and 6.4 percent annually, according to Labor Department’s consumer price index released Tuesday, a jump in inflation which could encourage the Federal Reserve to further raise interest rates.

The consumer price index was expected to increase 0.4% in January from a month ago and 6.2% on an annual basis, according to Dow Jones.

Markets expect the Fed over its next two meetings in March and May to raise its overnight borrowing rate another half a percentage point from its current target range of 4.5%-4.75%. January's CPI report will take some time to analyze, as the BLS changed its methodology in how it reports the index. That number rose 0.2% in January and was up 4% from a year ago. The Fed also changed how it computes an important component called owners' equivalent rent, a measure of how much property owners could get if they rented. "If retail sales also show strength tomorrow, the Fed may have to increase their funds rate target to 5.5% in order to tame inflation." There's widespread belief that the economy could tip into at least a shallow recession later this year or early in 2023. The component accounts for more than one-third of the index and rose 0.7% on the month and was up 7.9% from a year ago. "Inflation is easing but the path to lower inflation will not likely be smooth," said Jeffrey Roach, chief economist at LPL Financial. That has come despite Federal Reserve efforts to quell the problem. The CPI had risen 0.1% in December. Rising prices meant a loss in real pay for workers. economy in danger of slipping into recession this year.

Consumer Price Index data released on Tuesday showed that price increases picked up briskly on a monthly basis last month. That was true across both key ...

The data for January showed price increases picking up again on a monthly basis, although the year-over-year numbers continued to show some slowdown in inflation. “Markets are vulnerable in the short-run for that reason.” The prospect of a continued drop in the pace of price rises had raised hopes that the Federal Reserve would soon end its campaign of raising interest rates, which tends to lower inflation but also raise borrowing costs for consumers and companies. Having risen ahead of the data release, futures on the S&P 500, which allow investors to bet on the index before markets officially open, initially moved sharply lower before recovering to trade roughly flat for the day. [its profits fell](https://www.bloomberg.com/news/articles/2023-02-06/tyson-shares-slump-with-falling-meat-prices-hitting-profits?cmpid=BBD021023_TRADE&utm_medium=email&utm_source=newsletter&utm_term=230210&utm_campaign=trade#xj4y7vzkg) in the first quarter as consumers cut back on purchasing its products, especially more expensive items like beef and pork. The average price of large eggs dropped from more than $5 a carton earlier this year to less than $3 in February, the department said. A price index for meats, poultry, fish and eggs increased in January, as did another for cereals and bakery products. Much of the inflation slowdown in recent months has come from a moderation in price increases for goods and commodities. Food prices grew 0.5 over the month, ticking up slightly compared with an increase of 0.4 percent in December. That trend continued in January, with services prices excluding energy continuing to increase rapidly, partly owing to the jump in rental and other housing costs. Goods, including used cars and apparel for women, dropped in price on a monthly basis, but even the slowdown in physical products was less pronounced than it had previously had been. The price index was up 6.4 percent in January compared with a year earlier.

U.S. inflation moderated in January from historic highs but the pace of easing showed signs of leveling off. The consumer-price index, a closely watched ...

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- The index for all items less food and energy rose 5.6 percent over the past 12 months. The shelter index increased 7.9 percent over the last year, accounting for nearly 60 percent of the total increase in all items less food and energy. The household furnishings and operations index rose 0.3 percent in January, and the communication index increased 0.4 percent. - The index for all items less food and energy rose 0.4 percent in January. The energy index increased 2.0 percent over the month as all major energy component indexes rose over the month. The gasoline index increased 1.5 percent over the span. The food index increased 0.5 percent over the month with the food at home index rising 0.4 percent. The index for other food at home rose 0.7 percent in January. The all items index increased 6.4 percent for the 12 months ending January; this was the smallest 12 month increase since the period ending October 2021. The all items less food and energy index rose 5.7 percent over the last 12 months. The food index increased 0.3 percent over the month with the food at home index rising 0.2 percent. Over the last 12 months, the all items index increased 6.4 percent before seasonal adjustment.

The monthly inflation data gives the clearest insight into how price changes are affecting consumers in the United States.

The January 2023 inflation report was released at 8:30am (ET) on Tuesday, 14 February. Last month the BLS reported that inflation in the United States had continued the trend of gradual decline, falling to an annualised rate of 6.5%. Each month the CPI is published with data related to the previous month’s economic activity. After battling against inflation for much of 2022 the monthly CPI report has become a key bell-weather of economic confidence. The report found that inflation was running at an annualised rate of 6.4%, and a 0.5% increase on typical prices one month earlier. “It just won’t be at the top of their agenda when thinking about their own finances.” These efforts do appear to have brought down inflation but have also placed a strangle hold on the economy and worried markets. This suggests that the inflationary pressures still pose a considerable threat to the economy and could prompt the Federal Reserve into implementing more interest rate hikes to address the trend. Motor fuel plays a large role in household finances for drivers so price changes can have a significant impact on inflation. Likewise the S&P 500 and Nasdaq Composite all closed up. Figures are calculated using a The first inflation data for 2023 was released on Tuesday morning as the Bureau of Labor Statistics (BLS) published the consumer price index (CPI) report for January.

The Dow Jones Industrial Average briefly fell more than 200 points Tuesday after a hotter-than-expected January Consumer Price Index report on inflation.

[VC](https://research.investors.com/quote.aspx?symbol=VC)) [CAT](https://research.investors.com/quote.aspx?symbol=CAT)) [SNOW](https://research.investors.com/quote.aspx?symbol=SNOW)) [JPM](https://research.investors.com/quote.aspx?symbol=JPM)) [WING](https://research.investors.com/quote.aspx?symbol=WING)) [INSP stock](https://research.investors.com/stock-checkup/nyse-inspire-medical-systems-insp.aspx) shows a modest 84 [IBD Composite Rating.](https://www.investors.com/how-to-invest/investors-corner/stocks-to-buy-and-watch-ibd-composite-rating-top-growth-stocks/) INSP stock was down 1.2% Tuesday. [4 Top Growth Stocks To Buy And Watch In The Stock Market Rally](https://www.investors.com/stock-lists/stocks-near-a-buy-zone/dow-jones-leader-salesforce-headlines-4-stocks-in-or-near-buy-zone/) [featured in this week's Stocks Near A Buy Zone column](https://www.investors.com/stock-lists/stocks-near-a-buy-zone/dow-jones-leader-salesforce-headlines-4-stocks-in-or-near-buy-zone/), is building a cup with handle that has a 178.94 [buy point](https://www.investors.com/how-to-invest/investors-corner/apple-stock-set-up-proper-buy-point-before-big-rally/). [Five Dow Jones Stocks To Buy And Watch Now](https://www.investors.com/research/dow-jones-stocks/) Inspire and Dexcom were recent [IBD Stock Of The Day](https://www.investors.com/category/research/ibd-stock-of-the-day/) subjects. [Dow Jones stocks](https://www.investors.com/research/dow-jones-stocks/), Apple shares jumped 1.9% Monday, rebounding from last week's losses. [Monday's The Big Picture column](https://www.investors.com/market-trend/the-big-picture/indexes-climb-more-than-1-as-nasdaq-leads-inflation-report-next-for-stock-market/) commented, "It seems the Nasdaq knows no moderation. [Lattice stock ](https://www.investors.com/news/technology/lscc-stock-lattice-semiconductor-delivers-beat-and-raise-report/)rose around 1%. [IBD Leaderboard](https://leaderboard.investors.com/#/leaders/leadersnearabuypoint) stock. [approaching a buy point](https://www.investors.com/research/ibd-stock-analysis/arista-networks-posts-accelerating-growth-as-anet-stock-ascends-and-tech-stocks-like-mbly-nvda-ride-nasdaq-power-trend/) at 140.91. Finally, SolarEdge shares lost nearly 5% despite [strong fourth-quarter earnings and sales results](https://www.investors.com/news/technology/sedg-stock-solaredge-climbs-on-earnings/).

The consumer price index showed firmer price pressures in January, as the annual CPI inflation rate dipped less than expected. The core CPI inflation rate, ...

In January, the CPI proxy for core nonhousing services saw prices rise 0.5% on the month, while the 3-month annualized inflation rate held at 5.6%. The best clue to PCE health services inflation won't come from the CPI but from Thursday's producer price index. After the CPI report, the S&P 500 fell 0.5% in volatile morning trade. Hospital service prices rose 0.5% on the month. The CPI inflation rate eased to 6.4% from 6.5% the prior month vs. The 2-year Treasury yield, which is more linked to Fed decisions, rose 6 basis point to 4.6%. The annual core inflation rate eased to 5.6% vs. The core CPI rose 0.4% vs. The good news for markets that has sparked the current S&P 500 rally attempt is that wage growth has showed a surprising deceleration. The consumer price index showed firmer price pressures in January, as the annual CPI inflation rate dipped less than expected. The core CPI inflation rate peaked at a 40-year-high 6.6% in September. The core CPI inflation rate, which strips out food and energy, also came in hotter than predicted.

Traders work on the floor of the New York Stock Exchange. NYSE. Stocks wavered Tuesday after the January consumer price index report showed that inflation grew ...

[Palantir](/quotes/PLTR/)— Shares jumped 18% on the back of [quarterly results](https://www.cnbc.com/2023/02/13/palantir-q4-earnings-2022.html)that came in ahead of analysts' expectations, according to Refinitiv. CNBC Pro subscribers can see what to expect for the entire week [here](https://www.cnbc.com/2023/02/10/investors-will-have-their-eyes-on-the-consumer-price-index-in-the-week-ahead.html). [Arista Networks](/quotes/ANET/)— The cloud stock advanced less than 1% after reporting earnings and revenue that came in ahead of the consensus estimate set by analysts polled by Refinitiv. [Coca-Cola](/quotes/KO/) beat revenue expectations for the fourth quarter. [Palantir](/quotes/PLTR/) — Shares of the software company surged 18% in extended trading after Palantir reported it made a profit in the fourth quarter, the first GAAP profit in the company's history. "Instead, it reflects a view that the current valuation is difficult to reconcile with the quality of the underlying assets and cash flow power through a cycle." "That of course is how that market feels today and can always change but for now, only the December 2023/January 2024 fed funds futures contract does a rate below 5% show up and barely," he added. [The S&P 500](/quotes/.SPX/) slipped 0.52%, and the [Nasdaq Composite](/quotes/.IXIC/) ticked 0.80% lower. [Restaurant Brands](/quotes/QSR/) — Shares of the Burger King parent dipped 3% after it reported 72 cents in earnings per share for the fourth quarter, two cents below Wall Street estimates, according to FactSet. That was [slightly higher](#107194186-IMfXLRo8U) than economist estimates of the basket of goods and services rising 0.4% on the month and 6.2% on the year, according to a survey by Dow Jones. "That could be the recipe for a soft landing, but it remains to be seen when the Fed will shift away from rate hikes and if the labor market will lose its resiliency." Before the number was released, JPMorgan's trading desk predicted that an annual increase of 6.4% to 6.5% would trigger an S&P 500 loss of about 1.5% on Tuesday.

Tuesday's Consumer Price Index data could hold big clues about the Federal Reserve's future policy moves.

of Anti-Woke, Inc.](https://www.politico.com/news/magazine/2023/02/13/anti-woke-ramaswamy-2024-election-00082414),” is eying the presidency. (Politico) [Chinese technology](https://www.nytimes.com/2023/02/13/business/energy-environment/ford-catl-electric-vehicle-battery.html). (NYT) (FT) (Bloomberg) de la Merced](https://www.nytimes.com/by/michael-j-de-la-merced), [Lauren Hirsch](https://www.nytimes.com/by/lauren-hirsch) and One prominent market watcher even [forecasts](https://www.bloomberg.com/news/articles/2023-02-14/mr-yen-says-ueda-may-raise-rates-by-october-currency-to-gain?srnd=markets-vp) the B.O.J. The carmaker also plans to [cut 3,800 positions](https://www.reuters.com/business/autos-transportation/ford-eliminate-3800-engineering-administration-jobs-europe-2023-02-14/)across Europe as it transitions to E.V. [According to Bloomberg](https://www.bloomberg.com/news/articles/2023-02-13/top-us-china-diplomats-weigh-first-meeting-since-balloon-drama?cmpid=BBD021423_MKTEU&utm_medium=email&utm_source=newsletter&utm_term=230214&utm_campaign=marketseurope), Blinken could speak with Wang Yi, China’s top diplomat, at the Munich Security Conference. The Supreme Court will soon decide a case that asks if algorithms that recommend content to users should be defined as editors. A spokesman for committee Republicans told DealBook that Scott wants to balance the need to protect consumers while promoting innovation, the same position as Toomey.

Although inflation continued to ease last month, the CPI report still ensures more rate hikes from the Federal Reserve.

– David Rosenberg, founder and president of [Rosenberg Research](https://www.rosenbergresearch.com/) (opens in new tab) [earnings](https://www.kiplinger.com/investing/stocks/17494/next-week-earnings-calendar-stocks). – John Luke Tyner, portfolio manager at [Aptus Capital Advisors](https://aptuscapitaladvisors.com/) (opens in new tab) [natural gas](https://www.kiplinger.com/article/investing/t015-c008-s001-how-investors-can-bet-on-rising-natural-gas-prices.html) costs and another meaty rise (0.5%) in food costs. – Sal Guatieri, senior economist at [BMO Capital Markets](https://capitalmarkets.bmo.com/en/) (opens in new tab) [Federal Reserve still has work to do](https://moneyweek.com//economy/us-economy/605702/is-us-inflation-accelerating-again-figures-suggest-the-fed-has-further-to) (opens in new tab) to tame inflation. Excluding food and energy, the core CPI increased 0.4% amid a slight pickup in core goods and a solid 0.5% rise in core services prices. – Gargi Chaudhuri, head of [iShares Investment Strategy, Americas](https://www.ishares.com/us/strategies) (opens in new tab) Clothing and vehicle [insurance](https://www.kiplinger.com/personal-finance/insurance/car-insurance) costs also posted outsized gains. Economists surveyed by [Dow Jones](https://www.dowjones.com/) (opens in new tab) were looking for the monthly inflation rate to rise 0.4% last month. "There was more than the usual degree of mystery and intrigue ahead of the January CPI report, given the BLS's reweighting changes (now annually instead of biennially). However, the slowdown in year-over-year inflation decelerated in January and that will probably support our view of the Federal Reserve's (Fed) argument that it is not done raising rates."

Though inflation appears to have peaked many months ago, the fact remains that it's still far too high for the central bank's comfort. That's why the Consumer ...

[CPI](https://www.bls.gov/cpi/) are collected in 75 [urban areas](https://www.kiplinger.com/real-estate/places-to-live/601488/25-cheapest-us-cities-to-live-in) throughout the country and from about 23,000 retail and service establishments. [energy prices](https://www.kiplinger.com/economic-forecasts/energy), and is considered to be a better predictor of future inflation. As for the next CPI report, the February inflation figures are slated for release by the BLS on Tuesday, March 14 at 8:30 a.m. Data on [rents](https://www.kiplinger.com/real-estate/places-to-live/603136/the-10-biggest-cities-with-the-cheapest-apartment-rents) are collected from about 50,000 landlords or tenants. The headline number is the main inflation gauge. He has written for The Wall Street Journal, Bloomberg, Consumer Reports, Senior Executive and Boston magazine, and his stories have appeared in the New York Daily News, the San Jose Mercury News and Investor's Business Daily, among other publications. and contributed to Maxim magazine back when lad mags were a thing. [inflation](https://www.kiplinger.com/economic-forecasts/inflation) appears to have peaked many months ago, the fact remains that it's still far too high for the central bank's comfort. A long-time financial journalist, Dan is a veteran of SmartMoney, MarketWatch, CBS MoneyWatch, InvestorPlace and DailyFinance. This explains the market's obsession with the next CPI report. Markets desperately want the Fed to stop raising interest rates – and perhaps even envisage a time when they might cut them – but that won't happen until inflation is under control. was a question no one was asking back in the days of 2% inflation readings.

With new data showing inflation has been stronger than previously reported, the Fed is seen keeping rates higher, longer.

And for the end of the year, the market now sees the Fed trimming the funds rate to 5.25% through December, as opposed to falling back down to 4.75%. Caldwell says that prices in this area, excluding healthcare as well, have averaged a 5.8% annualized inflation rate over the last three months. Core PCE inflation averaged a 2.9% annualized rate in the three months ended in December, Caldwell says. In January, energy prices rose 2.0% over the month as gasoline prices rose 2.4% and utility (piped) gas services prices rose 6.7%. Growth in consumer spending and economic activity has trended down since mid-2021.” Caldwell says the revisions fall closer in line with the past year’s economic trends: In addition to the slowdown in consumer spending growth, supply chain disruptions (outside of the impact of Russia on oil and gas markets) have also declined over the past year. Previously, core CPI averaged a 3.1% annual rate in the three months through December, according to Caldwell, “but the BLS now estimates it at 4.3%.” Shelter inflation is still running at a blistering pace of 9%, but Caldwell says this won’t last much longer. In addition, much of the attention hasn’t been on the January CPI report itself but on the picture painted by routine revisions to 2022′s inflation data. On a year-over-year basis, inflation is still trending lower: CPI increased 6.4% for the 12 months ended in January, its smallest 12-month increase since October 2021. While the trend toward lower inflation appears to be still on track, it’s not just the direction of inflation that matters to the outlook for the economy, markets, and Federal Reserve policy but also the levels. Core CPI, which excludes the volatile food and energy components, rose 0.4% in January, also in line with forecasts. [Bureau of Labor Statistics reported](https://www.bls.gov/news.release/pdf/cpi.pdf) an overall rise of 0.5% in the Consumer Price Index for January, in line with consensus estimates, for its fastest month-over-month reading since October 2022.

The Consumer Price Index (CPI) report came in hotter than expected even as it appeared that inflation was cooling down at the end of 2022.

Over the past year, the CPI Index increased by 6.4% before adjusting seasonally. Economists anticipate that the Fed is likely to raise its benchmark interest by half a percentage point or 50 basis points versus its current target range from 4.5% to 4.75%. Futures were mixed following the CPI report. Food inflation has been stubborn about falling, with prices soaring by 10.1% year-over-year in January. This was higher than consensus estimates of an increase of 0.4% in January. The Consumer Price Index (CPI) report came in hotter than expected even as it appeared that inflation was cooling down at the end of 2022.

The increase in the consumer-price index, a closely watched measure of inflation, edged down from 6.5% in December, the Labor Department said Tuesday. That ...

[Kohl's Coupon 30% off sitewide](https://www.wsj.com/coupons/kohls) [Wayfair coupon $20 off](https://www.wsj.com/coupons/wayfair) That marked the seventh straight month of easing inflation since

Consumer prices accelerated in January suggesting that the Fed was far from pausing its interest rate hiking campaign.