CPI Report And Analysis: Inflation On The Rise

The Consumer Price Index (CPI) is a measure of the average change in prices paid by consumers for a basket of consumer goods and services. It is a key indicator of inflation, which is the rate at which prices are rising over time.

Latest CPI Reading:

The latest CPI data, released on February 12, 2025, shows that the CPI for Consumers (CPI month over month) increased 0.5 percent in January 2025, seasonally adjusted. This means that prices rose by 0.5 percent on average in January. Over the last 12 months, the CPI (year over year) increased 3.0 percent, not seasonally adjusted.

Trend:

The CPI has been on an upward trend in recent months, after a period of relatively stable prices in 2023. This indicates that inflation is becoming more of a concern. The recent increase in the CPI was driven by rising prices for a variety of goods and services, including shelter, food, and energy.

Implications:

The recent CPI data suggests that inflation is likely to remain elevated in the near term. This could lead the Federal Reserve to push out any cut in interest rates or even raise rates in an effort to curb inflation. Higher interest rates could slow economic growth and make it more expensive for consumers and businesses to borrow money.