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In January, overall inflation climbed 3.3 percent year-over-year for core items and 0.5 percent monthly, according to data from the Bureau of Labor Statistics released on Wednesday, Feb. 12. That ran slightly ahead of economists' prediction of 3.2 percent inflation, NBC News reported.
Core items exclude notably volatile prices for food and energy. The Consumer Price Index (CPI) still increased by 3.0 percent for all items.
Egg prices easily saw the most dramatic jump from December 2024, surging 15 percent in the biggest monthly increase since 2015. A massive bird flu outbreak has fueled the sharp rise in egg prices, forcing many retailers to limit carton purchases.
Housing costs, which account for nearly 30 percent of the inflation index, climbed 0.4 percent in January and 4.4 percent over the past year. Gas prices jumped 1.8 percent in January, along with overall energy costs (1.1 percent) and prescription drugs (2.5 percent).
A WalletHub study also released on the same day said inflation was especially high in some Northeast metropolitan areas. Out of 23 US cities, Boston was ranked as having the third-worst inflation problem, followed by New York City in sixth place, with prices rising between 3.9 and 4.0 percent year-over-year in both regions.
Inflation wasn't quite as dramatic in major metro areas in the mid-Atlantic. In Philadelphia (12th), Washington, DC (14th), and Baltimore (15th), inflationary pressure has slightly eased in recent months, but annual price increases still stand between 2.7 percent and 3.4 percent, respectively.
The new CPI data comes as President Trump faces added scrutiny over the lack of progress on his "day one" pledge to immediately reduce consumer costs. Inflation and personal economic problems were major issues for voters in the 2024 Presidential election, a sentiment Trump took advantage of to return to the White House.
Adding to inflation fears, President Trump's tariff policies and threats have sparked market uncertainty. He has implemented a 10-percent tariff on goods from China, reinstated a 25-percent tariff on all aluminum and steel imports from his first term, and threatened tariffs on neighboring allies Canada and Mexico.
President Trump has also faced mounting criticism for his administration's slow response to the bird flu crisis, which Trump has blamed former President Joe Biden for causing. Critics have argued that federal intervention has been insufficient to stabilize egg supplies and curb grocery price spikes.
There are also concerns about the economic fallout from billionaire Elon Musk's partisan gutting of federal agencies, which President Trump has allowed the Tesla CEO to do as a "special government employee." President Trump signed an executive order on Tuesday, Feb. 11, increasing Musk's power through the Department of Government Efficiency, an organization not approved by Congress.
Trump has also pushed for the Federal Reserve to reduce interest rates, a move the Fed opposes with inflation remaining above its two-percent target. Chair Jerome Powell defended the Fed's January decision to pause rate cuts by saying premature reductions could reignite inflation.
Powell testified to the House Financial Services Committee on February 11, warning that economic growth has weakened.
"Based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook," Powell said. "Inflation pressures remain muted."
Powell also re-emphasized that the Fed will carefully monitor economic trends before resuming any rate cuts.
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