Consumer prices stay flat from Dec. to Jan

The U.S. Department of Labor's recent consumer price index report was flat in Jan for the second month in a row. It is the most recent indicator that inflation is leveling off in the United States. Source of article:

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Take a look at consumer price index



In the last twelve months, a 1.6 percent increase was seen in the consumer price index, according to the Labor Department. Consumer spending drives 70 percent of the economy, which mean slower inflation is welcome. That is precisely what we saw during the last year since the year before that there was a 2.9 percent increase in the consumer price index.



Federal Reserve continues to lower interest rates



Lots of people are concerned that the inflation rate will end up increased a ton in the end since the Federal Reserve is keeping interest rates artificially low by getting $85 billion in treasury and mortgage bonds every month. Right now, that seems to be untrue.

Looking at core costs



Besides energy and food costs that are pretty volatile, <a href="https://personalmoneynetwork.com/cash-advance">the price of all goods</a> increase by 0.3 percent from December to Jan. During the last 12 months, a 1.9 percent increase was seen in those costs, which is good for the Federal Reserve.



The cost of hotels, travel and clothing has increased, and that caused core prices to grow to their highest amount in two years. A lot of analysts are concerned that this will trigger a rise in inflation fairly soon.



Paying for food and energy



Two years ago, food costs increased 4.7 percent. Last year, it was only 1.8 percent, which is really good news. Fuel prices have also dropped a lot. On Feb. 20, the price of fuel was $3.77 on average. A month before that, the cost was $4.23. The price is starting to increase again, and that could cause a change in inflation.



Sources



New York Post

Daily Finance

News Journal