The U.S. Bureau of Labor Statistics (BLS) reported today that inflation stood at 7.5% as of January, the largest 12-month increase since February 1982. Increases in the indexes for food, electricity, and shelter were the largest contributors to the seasonally adjusted all items increase.
For the last 12 months, the cost of all items except for food and energy index rose 6%. The energy index rose 27% over the last year, and the food index increased 7%.
The food index rose 0.9% in January following a 0.5% increase in December.
The energy index also increased 0.9% over the month, with an increase in the electricity index being partially offset by declines in the gasoline index and the natural gas index.
The BLS numbers showed that all of the six major grocery store food group indexes increased. By far the largest increase was for meats, poultry, fish, and eggs, which rose 12.2% over the year. The index for dairy and related products increased 3.1%, the smallest 12-month increase among the groups.
The gasoline index rose 40% over the last year, despite declining in January. The index for natural gas rose 23.9% over the last 12 months, and the index for electricity rose 10.7%.
In a statement released by the White House this morning, President Biden said, “While today”™s report is elevated, forecasters continue to project inflation easing substantially by the end of 2022. And fortunately we saw positive real wage growth last month, and moderation in auto prices, which have made up about a quarter of headline inflation over the last year. We separately saw good news with new unemployment claims continuing to decline. That”™s a sign of the real progress we”™ve made in getting Americans back to work over the last year.”
