Prices Rose at a 7.5 % Annual Rate in January, the Fastest Pace of Inflation in 40 Years

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent 
in January on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics 
reported today. Over the last 12 months, the all items index increased 7.5 
percent before seasonal adjustment.

Increases in the indexes for food, electricity, and shelter were the largest 
contributors to the seasonally adjusted all items increase. The food index rose 
0.9 percent in January following a 0.5-percent increase in December. The energy 
index also increased 0.9 percent over the month, with an increase in the 
electricity index being partially offset by declines in the gasoline index 
and the natural gas index.

The index for all items less food and energy rose 0.6 percent in January, the 
same increase as in December. This was the seventh time in the last 10 months 
it has increased at least 0.5 percent. Along with the index for shelter, the 
indexes for household furnishings and operations, used cars and trucks, medical 
care, and apparel were among many indexes that increased over the month.  

The all items index rose 7.5 percent for the 12 months ending January, the 
largest 12-month increase since the period ending February 1982. The all items 
less food and energy index rose 6.0 percent, the largest 12-month change since 
the period ending August 1982. The energy index rose 27.0 percent over the last 
year, and the food index increased 7.0 percent. 

Food

The food index increased 0.9 percent in January. The food at home index increased 
1.0 percent over the month after rising 0.4 percent in December. Five of the six 
major grocery store food group indexes increased in January. The index for cereals 
and bakery products increased the most, rising 1.8 percent over the month. The 
index for other food at home increased 1.6 percent in January, while the index 
for dairy and related products rose 1.1 percent. The fruits and vegetables index 
rose 0.9 percent over the month, and the meats, poultry, fish, and eggs index 
increased 0.3 percent. The only grocery store group index not to increase in 
January was the index for nonalcoholic beverages, which was unchanged.

The food away from home index rose 0.7 percent in January following an increase 
of 0.6 percent in December. The index for full service meals and the index for 
limited service meals both also rose 0.7 percent over the month.

The food at home index rose 7.4 percent over the last 12 months. All of the six 
major grocery store food group indexes increased over the period. By far the 
largest increase was that of the index for meats, poultry, fish, and eggs, which 
rose 12.2 percent over the year. The index for dairy and related products 
increased 3.1 percent, the smallest 12-month increase among the groups.  

The index for food away from home rose 6.4 percent over the last year, the largest 
12-month increase since January 1982. The index for limited service meals rose 8.0 
percent over the last 12 months, and the index for full service meals rose 7.1 
percent. The index for food at employee sites and schools, in contrast, declined 
46.9 percent over the past 12 months, reflecting widespread free lunch programs.

Energy

The energy index increased 0.9 percent in January. The electricity index rose 
sharply in January, increasing 4.2 percent. The gasoline index fell 0.8 percent 
in January after rising rapidly in the autumn of 2021. (Before seasonal adjustment, 
gasoline prices rose 0.1 percent in January.) The index for natural gas also 
declined in January, falling 0.5 percent after declining 0.3 percent in December. 

The energy index rose 27.0 percent over the past 12 months with all major energy 
component indexes increasing. The gasoline index rose 40.0 percent over the last 
year, despite declining in January. The index for natural gas rose 23.9 percent 
over the last 12 months, and the index for electricity rose 10.7 percent.

All items less food and energy

The index for all items less food and energy rose 0.6 percent in January, the 
same increase as December. The shelter index increased 0.3 percent in January as 
the rent index increased 0.5 percent and the owners’ equivalent rent index rose 
0.4 percent. The index for household furnishings and operations rose 1.3 percent 
over the month following a 1.1-percent increase in December. The used cars and 
trucks index rose 1.5 percent in January, a deceleration from the 3.3-percent 
increase reported in December.

The medical care index rose 0.7 percent in January. The index for hospital 
services increased 0.5 percent and the index for prescription drugs rose 1.3 
percent, while the index for physicians’ services declined 0.1 percent. Other 
indexes that rose in January include recreation (+0.9 percent), apparel (+1.1 
percent), personal care (+1.0 percent), airline fares (+2.3 percent), and 
education (+0.2 percent).

Only a few indexes decreased in January; among those that did were lodging away 
from home (-3.9 percent) and wireless telephone services (-0.1 percent). The 
index for new vehicles was unchanged over the month.

The index for all items less food and energy rose 6.0 percent over the past 12 
months. Major contributors to this increase include shelter (+4.4 percent) and 
used cars and trucks (+40.5 percent). However, the increase is broad-based, with 
virtually all component indexes showing increases over the past 12 months. 

Not seasonally adjusted CPI measures

The Consumer Price Index for All Urban Consumers (CPI-U) increased 7.5 percent 
over the last 12 months to an index level of 281.148 (1982-84=100). For the month, 
the index increased 0.8 percent prior to seasonal adjustment.  

The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) 
increased 8.2 percent over the last 12 months to an index level of 276.296 
(1982-84=100). For the month, the index rose 0.9 percent prior to seasonal 
adjustment.  

The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 7.1 
percent over the last 12 months. For the month, the index increased 0.8 percent 
on a not seasonally adjusted basis. Please note that the indexes for the past 10 
to 12 months are subject to revision.