February 11, 2022

The Consumer Price Index for All Urban Consumers (CPI-U) climbed 0.6 percent on a seasonally adjusted basis in January, according to the U.S. Bureau of Labor Statistics. Before seasonal adjustment, the all items index gained 7.5 percent over the previous 12 months.

Food, electricity, and shelter index increases were the major contributors to the seasonally adjusted all items increase. Following a 0.5-percent increase in December, the food index increased by 0.9 percent in January. The energy index rose 0.9 percent over the month, with a gain in the electricity index offset in part by falls in the gasoline and natural gas indexes.

The all-items index increased 7.5 percent in the year ended January, the highest 12-month increase since the year concluding February 1982. The all-items index excluding food and energy increased 6.0 percent in a year, the highest 12-month growth since the year ending August 1982. Over the last year, the energy index jumped by 27.0 percent, while the food index increased by 7.0 percent.

Food

In January, the food index increased by 0.9 percent. The food at home index grew 1.0 percent month over month, following a 0.4 percent increase in December. In January, five of the six major grocery store food category indexes climbed. The cereals and bakery items index grew the greatest, up 1.8 percent month on month. In January, the index for other food at home jumped by 1.6 percent, while the index for dairy and related items increased by 1.1 percent. The index for fruits and vegetables increased by 0.9 percent month over month, while the index for meats, poultry, fish, and eggs increased by 0.3 percent. The only grocery store group index that did not rise in January was the nonalcoholic beverages index, which remained steady.

The food away from home index increased by 0.7 percent in January, following a 0.6 percent increase in December. Both the index for full service meals and the index for limited service meals increased 0.7 percent month on month.

Energy

In January, the energy index increased by 0.9 percent. The electricity index increased by 4.2 percent in January. After significantly climbing in the autumn of 2021, the gasoline index dipped 0.8 percent in January. (Prices of gasoline rose 0.1 percent in January before seasonal adjustments.) The natural gas index also fell in January, falling 0.5 percent after losing 0.3 percent in December.

Over the last year, the energy index has risen 27.0 percent, with all major energy component indexes rising as well. Despite a drop in January, the gasoline index has risen 40.0 percent in the last year. Over the last year, the natural gas index increased by 23.9 percent, while the electricity index increased by 10.7 percent.

All items less food and energy

The index for all items except food and energy grew 0.6 percent in January, reflecting the December increase. In January, the shelter index climbed by 0.3 percent, while the rent index increased by 0.5 percent and the owners’ equivalent rent index increased by 0.4 percent. The index for domestic furnishings and operations increased 1.3 percent month over month after increasing 1.1 percent in December. The index of used vehicles and trucks grew 1.5 percent in January, down from the 3.3 percent gain reported in December. In January, the medical care index increased by 0.7 percent. The index for hospital services climbed by 0.5 percent, the index for prescription pharmaceuticals increased by 1.3 percent, and the index for physicians’ services decreased by 0.1 percent. Other indexes that climbed in January include recreation (+0.9%), apparel (+1.1%), personal care (+1.0%), airline tickets (+2.3%), and education (+0.2%).

Only a few indexes fell in January, including accommodation away from home (-3.9 percent) and wireless telephone services (-0.1 percent). The new vehicle index remained constant month on month. Over the last year, the index for all items except food and energy increased by 6.0 percent. Shelter (+4.4 percent) and used cars and trucks (+40.5 percent) are major contributors to this growth. However, the growth is broad-based, with practically all component indices rising in the last year.

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