The Consumer Price Index for All Urban Consumers rose 0.2 percent in January, seasonally adjusted, and 2.4 percent over the last 12 months, according to data released Tuesday by the U.S. Bureau of Labor Statistics. The index for all items less food and energy increased 0.3 percent in January, and 2.5 percent over the year.
February’s inflation data, expected later this month, is anticipated to show a steady CPI, though a recent surge in oil prices is complicating the outlook for the Federal Reserve. The U.S. Bureau of Labor Statistics reported that in January, the index for shelter contributed over 60 percent of the all items increase.
The price of fats and oils saw a decrease in January, falling from 319.249 in December 2025 to 316.527, according to data from the Federal Reserve Economic Data (FRED). This contrasts with broader inflationary pressures observed in other sectors. The CPI for all items less food and energy, often referred to as “core inflation,” is closely watched by the Federal Reserve as an indicator of underlying inflationary trends.
Analysts are closely monitoring the potential impact of rising oil prices on consumer energy costs. A recent report from Barrons noted that higher oil prices, if sustained, will boost consumer energy prices. The CPI measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The index is based on prices collected from approximately 4,000 housing units and 26,000 retail establishments across 87 urban areas.
The Bureau of Labor Statistics also releases a seasonally adjusted CPI, which removes the effects of seasonal changes like weather, school years, and holidays. This allows for a clearer view of underlying price trends. The CPI can be used to identify periods of inflation and deflation, with significant increases indicating inflationary periods and decreases suggesting deflation.
