CPI: U.S. consumer prices rise 0.5% in January; egg prices spike 15.2%

Feb. 12 (UPI) -- U.S. consumer prices rose by more than expected in January, driven by a sharp increase in egg prices amid an outbreak of bird flu, the U.S. Bureau of Labor Statistics reported Wednesday.

The Consumer Price Index was up 0.5% on a seasonally adjusted basis in January and has risen 3% on a yearly basis.

Core CPI, which excludes volatile food and energy prices rose 0.4% in January and 3.3% on an annual basis.

Dow Jones economists had estimated that the all-items index would rise 0.3% for the month and 2.9% annually while core CPI would rise 0.3% on a seasonally adjusted basis and 2.9% over a 12 month period.

Egg prices spiked 15.2% in January, the largest price increase since June 2015, with prices up 53% over the past 12 months.

The BLS said the price of eggs accounted for about two-thirds of the monthly food at home index which rose by 0.4% for food at home and 0.5% for food away from home the month. The food index was up 2.5% on an annual basis.

The Dow Jones Industrial Average initially fell by 459 points or 1% Wednesday on the inflation news while the S&P 500 and the Nasdaq Composite were also down 1% each.

Shelter costs climbed 0.4% in January, accounting for nearly 30% of the inflation increase. Energy costs were up 1.1% for the month with gasoline up 1.8%.

With inflation rising again, Federal Reserve Chair Jerome Powell said during Capitol Hill testimony Tuesday interest rate cuts are on hold after cuts lowered rates by 1% in 2024.