Year-on-year, energy prices jumped 10.8 percent, following a 5.4 percent rise in December. In addition, inflation accelerated for transportation services (3.2 percent from 2.8 percent in December) but eased for shelter (3.5 percent from 3.6 percent) and medical care (3.6 percent from 3.9 percent). Meanwhile, food prices declined 0.2 percent, the same as in December.
Annual core inflation, which excludes food and energy, rose to 2.3 percent from 2.2 percent in the previous month and beating expectations of 2.1 percent.
On a monthly basis, consumer prices increased 0.6 percent, higher than 0.3 percent in December and also above forecasts of 0.3 percent. It is the highest monthly rate since February of 2013. Energy prices increased 4 percent as gasoline jumped 7.8 percent, accounting for nearly half the increase in CPI. Food cost, which had been unchanged for 6 consecutive months, increased 0.1 percent. The food at home index was unchanged, while the index for food away from home rose 0.4 percent. Additional upward pressure came from prices of apparel, new vehicles, motor vehicle insurance, and airline fares all rising 0.8 percent or more. The shelter index went up 0.2 percent, a smaller increase than in recent months.
Excluding food and energy, prices rose 0.3 percent, above 0.2 percent in the previous two months and beating expectations of 0.2 percent.