Annual Inflation Rose 6.4% in January
AllSides Summary
Inflation rose 6.4% in January on an annual basis, according to the Consumer Price Index Summary released Tuesday morning by the Bureau of Labor Statistics.
The Details: Inflation rose 0.5% from the month before and 6.4% over the prior 12 months. This marked a slight drop in the 6.5% annual growth pace from December 2022. The report cited the shelter index as the “dominant factor in the monthly increase in the index” for items not included in the food or energy indexes. This resulted in a 0.5% increase in the average cost of living, according to MarketWatch.
How The Media Covered It: ABC News framed the data as overall good news for the economy, and placed it in context of the past year’s inflation battle to show an overall cooling. The article states that “strong hiring and easing inflation has buoyed hopes among some economists that the U.S. could avert a recession” and placed a quote pessimistic about the economy in the last paragraphs. MarketWatch and Fox Business both framed the data as an indication that the U.S. has a long way to go in its battle against inflation. MarketWatch’s first paragraph cited the cost of living increase as being the “biggest increase in three months.” Fox Business stated that inflation “remained steady compared to last month” but emphasized the “persistent financial burden placed on millions of U.S. households by high prices.”
Featured Coverage of this Story
From the Center
CPI shows inflation still sticky and slowing grudgingly
The cost of living rose 0.5% in January — the biggest increase in three months — in a possible sign that U.S. inflation might not slow as quickly as hoped.
Higher housing costs and gasoline prices accounted for most of the increase. Economists polled by The Wall Street Journal had forecast a 0.4% advance in the consumer price index last month.
Consumer prices also rose 0.1% in December instead of declining, revised government figures showed.
U.S. stocks shed premarket gains after the report. Bond yields rose.
The annual rate of...
From the Right
Inflation rose 6.4% in January
The consumer price index (CPI) rose 6.4% in January on an annual basis, hotter than expected, but remained steady compared to last month.
The latest read presents more challenges for Federal Reserve Chair Jerome Powell who has hinted that disinflation is underway.
Still, elevated costs for everyday staples remain stubbornly high.
The Labor Department reported that the CPI, a broad measure of the price of everyday goods that includes gasoline, groceries and rents, rose 0.5% on the month in January after a surprise decline of 0.1% in December.
From the Left
Inflation continued to cool in January
Consumer prices rose 6.4% last month compared to a year ago, continuing a monthslong slowdown of price increases despite blockbuster job growth that revealed an economy running hotter than expected, government data on Tuesday showed.
The data marked the seventh consecutive month of smaller price hikes. In December, year-over-year inflation was 6.5%.
Inflation has fallen significantly from a summer peak but is more than triple the Federal Reserve's target of 2%.
Despite the slowdown in price hikes, the costs for some items have skyrocketed over the past year. The price...
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