The cost of shelter is continuing to drive consumer inflation. The shelter index accounted for over two-thirds of the annual increase in the Consumer Price Index (CPI), according to the U.S. Bureau of Labor Statistics (BLS).
Consumer inflation increased by 0.3% in January on a month-over-month basis, jumping from 0.2% in December. The CPI has grown by 3.1% over the last 12 months. Both measures were higher than forecasts; data from Bloomberg indicated economists expected month-over-month increases of 0.2% and an annual increase of 2.9%.
The annual increase represents a deceleration from the 3.4% increase for the 12 months ending in December. The inflation index for all items excluding food and energy increased 3.9% in the past 12 months, the same increase as in December.
The index for shelter increased 0.6% in January, following growth of 0.4% in both November and December. On an annual basis, the shelter index has increased 6%.
The index for owners’ equivalent rent rose 0.6% over the month of January, while the index for rent increased 0.4% in the month.
In addition to shelter costs, other notable indexes with increases over the past 12 months include motor vehicle insurance (+20.6%), recreation (+2.8%), personal care (+5.3%), and medical care (+1.1%).
This story appeared in Builder Online
