Consumer Prices Rise 0.5% in January, Yearly Inflation at 3.0%

U.S. consumer prices increased 0.5% in January, following a 0.4% rise in December, the Bureau of Labor Statistics reported in February. The annual inflation rate reached 3.0%, up slightly from 2.9% in December.

Shelter costs, which rose 0.4%, accounted for nearly one-third of January's increase. Energy prices climbed 1.1%, with gasoline up 1.8%. Food prices increased 0.4%, as grocery prices rose 0.5% and restaurant prices gained 0.2%.

Core inflation, which excludes food and energy, increased 0.4% for the month and 3.3% year-over-year. Notable increases included motor vehicle insurance, recreation, used cars, and medical care.

The egg index surged 15.2% in January, the largest monthly increase since June 2015, driving much of the increase in grocery prices.

The next Consumer Price Index report will be released March 12.