(The Center Square) – Consumer prices rose by 0.2% overall in January, according to recent data released by the U.S. Bureau of Labor Statistics.
Overall, the inflation rose to 2.4% annually in January, a significant cooldown from previous months.
In December and November, inflation rates rose 2.7%, respectively. Those rates were still lower from the 3% inflation rate in September.
The price index for shelter rose 0.2% in January and accounted for the largest factor item in monthly increases. Similarly, the food index rose 0.2%. These increases were offset by a significant decrease in the cost of energy with a 1.5% lower rate.
Over a 12 month period ending in January, the energy index decreased 0.1% and the food index increased 2.9%.
“This is good news on inflation,” said Heather Long, chief economist at Navy Federal. “There may be one more bump from tariffs, but its encouraging to see a cooling off.”
Gas prices fell by 7.5% over the period of a year ending in January alongside 1.8% lower rate in used cars and trucks. Long praised the slowdown in food price increases and pointed to the rates in January compared to December.
Food prices in December spiked 0.7% overall, whereas January only saw an increase of 0.2%.
“This will help a lot of struggling families,” Long said. “So will the decline in gas prices.”
The inflation report follows a better-than-expected January jobs report that showed an gain of 130,000 jobs and steady unemployment at 4.3%.