Since its more than nine percent peak in June, the Consumer-Price Index indicates that inflation continued to cool in January to a 6.4 percent increase from the year before, reports The New York Times. The latest rate is down from 6.5 percent in December and is the seventh month in a row of decline.
“We’re certainly down from the peak of inflation pressures last year, but we’re lingering at an elevated rate,” Laura Rosner-Warburton, senior economist at MacroPolicy Perspectives, said. “The road back to 2 percent is going to take some time.”
Food price growth increased in January, pushed by the price of eggs, cookies, and citrus fruits. Over the month, food prices grew by 0.5 percent, up slightly from the 0.4 percent increase in December. At restaurants, the price of food increased 0.6 percent compared to December, higher than grocery’s growth of 0.4 percent over the same period. Annually, the food index was up 10.1 percent.
The price of eggs was up 8.5 percent from the month before due to the avian flu outbreak that continues to affect the U.S.
Food prices have made it difficult for households to navigate inflation. Luckily, costs for farmers that facilitate higher price points at retail have cooled, including fuel and transportation expenses.
Many areas in the Western U.S. continue to experience droughts, which have decreased food supplies, and increased prices for products like livestock feed. Full Story (Subscription Required)
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