Inflation rose 0.5% in January, more than expected and up 6.4% from a year ago

According to a study released on Tuesday by the Labor Department, inflation increased to begin 2023 as consumers felt the effects of rising fuel,

gas, and housing prices. A comprehensive selection of everyday products and services are included in the consumer price index,

which increased 0.5% in January for a 6.4% annual gain. The Dow Jones survey of economists had predicted gains of 0.4% and 6.2%, respectively.

In contrast to expectations for 0.3% and 5.5%, the core CPI grew 0.4% monthly and 5.6% from a year ago when volatile food and energy were excluded.

Following the announcement, markets were erratic, with the Dow Jones Industrial Average opening almost 200 points down and continuing to decline.

The Bureau of Labor Statistics stated in the study that rising housing expenses were responsible for roughly half of the monthly increase.

The component, which makes up more than one-third of the index, increased 0.7% month over month and 7.9% year over year. In December,

the CPI had increased by 0.1%. Food expenditures increased by 0.5% and by 10.1%, while energy costs increased by 2% and 8.7%, respectively.

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