January CPI Higher Than Expected But Falls To 3.1% For The Year

The first inflation report of 2024 was released Tuesday with mixed results for the U.S. economy.

The Consumer Price Index (CPI), a key measure of inflation, increased slightly more than expected in January at 0.3%, according to the Bureau of Labor Statistics.

However, annual inflation dropped to 3.1% — less than half the 6.4% figure from one year ago – further signifying cooling inflation. The Federal Reserve’s target for inflation is 2%.

Shelter prices were the biggest driver in the CPI, accounting for about one-third of the increase. Food and energy prices helped offset the surge in housing costs — 0.6% for the month and 6% for the year.

Check back for more figures and the reaction on Wall Street.