An ordinary American had to spend far more money than usual last month to keep up with inflation, as the cost of necessities like food, rent, and petrol continued to rise.
Economists had predicted a larger drop in annual inflation from the previous month, but the fact that it only slowed somewhat instead highlights the pervasiveness of high consumer costs.
The Consumer Price Index increased 0.5% in January, the largest increase in three months, according to the most current data released by the Labor Department. The yearly inflation rate of 6.4% also exceeded expectations.
While it has decreased from a June high of 9.1%, it is still almost three times higher than the norm before the epidemic.
Very high inflation has put a strain on the budgets of most Americans, who have seen the prices of food, housing, and other needs rise. Low-income Consumers bear a disproportionate share of the cost because price changes have a greater effect on their already-thin earnings.
Used vehicle prices in the United States received relief in January, dropping 1.9% from the previous month and 11.6% from the same time a year earlier. The cost of both medical treatment and airfare decreased in the recent month.
The cost of food items rose by 0.5% in January, bringing the year-over-year rise to 10.1%. Eggs, cereal, rice, coffee, and fresh fruits including apples, bananas, and oranges all increased in price.
In addition, rent increased by 0.8% month-over-month and by 8% annually. Increasing rents are a reason for worry since they have a disproportionately negative impact on average families’ ability to make ends meet. The amount homeowners would have to pay in rent each month if they hadn’t made the decision to buy rose by 0.7% from the previous month.