U.S. consumer prices barely rose last month as a sharp increase in energy costs was offset by cheaper clothing, cars and air fares. The figures indicate inflation remains mild.
The Labor Department said Thursday that the consumer price index rose just 0.1 percent in January, down from a 0.2 percent gain in December. Prices have risen 1.6 percent in the past 12 months. Excluding the volatile food and energy categories, core prices also rose just 0.1 percent last month and 1.6 percent in the past year.
The year-over-year increase in core prices was the smallest in seven months.
The “mild uptick … confirms the fact that inflationary pressures remain well contained,” Martin Schwerdtfeger, an economist at TD Bank, said in a note to clients.
The small increase occurred even though cold weather pushed up the cost of natural gas, electricity and other home energy sources by the most in more than five years.
Yet other items fell or barely rose: Food prices increased just 0.1 percent, and the cost of men’s clothing fell by the most in nearly five years. New and used car and truck prices also dropped, and airline fares declined 2.2 percent.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.