New CPI Data Shows Stubborn Inflation

We’re really not making progress on inflation right now.

Senior economist at Wells Fargo, Sarah House, on the latest inflation reading that shows the pace of inflation remains pervasive.

Why It Matters: An important inflation reading, the Consumer Price Index, shows that inflation in January rose, year-over-year and month-over-month, meaning the Federal Reserve will be less likely to lower borrowing costs. It also means we have not experienced any overall downward trend in prices on goods that household typically buy — such as groceries, gasoline, car insurance and airfare. The inflation rate for January is 3%, up from 2.9% in December.

Something To Consider:

• The latest inflation reading on consumer goods shows food prices have all risen in the last year. The higher price of eggs creates a domino effect for products that need/require eggs for production.
• Egg prices have jumped more than 50% in one year, and 15.2% from December to January.
• “The egg shock is enormous,” says Joe Seydl, senior markets economist at J.P. Morgan.

Read More: US inflation got worse with rising groceries and gasoline prices (AP)

Here’s the inflation breakdown for January 2025 — in one chart (CNBC)

READ the full CPI report HERE (U.S. Bureau of Labor Statistics)

For a graph on egg prices, see HERE (U.S. Bureau of Labor Statistics)