Thursday, February 26, 2015

Energy Prices Continue to Drive CPI Decline

The Consumer Price Index declined 0.7% in January on a seasonally adjusted basis, as the price of gasoline continued to decline, the U.S. Bureau of Labor Statistics reported. Over the last 12 months, the CPI has decreased 0.1% before seasonal adjustment—notably lower than the 0.7% increase for the 12 months ending December and the first negative yearly change since October 2009.

The energy index fell 9.7% as the gasoline index fell 18.7% in January, the sharpest in a series of seven consecutive declines. The gasoline decrease was overwhelmingly the cause of the decline in the all items index, which would have risen 0.1% had the gasoline index been unchanged.

The index for all items less food and energy rose 0.2%. This index has risen 1.6% over the last 12 months. The shelter index rose 0.3% from December and 2.9% from January 2014.

The food index was unchanged after rising through all of 2014. The food at home index fell 0.2% in January after increasing in each of the last 6 months. The index for food away from home increased 0.2%, and has risen 3.1% over the last year.

Read the Bureau of Labor Statistics report.

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