Inflation eased for the seventh straight month in January, helped by lower costs for used vehicles and offering some relief to consumers struggling with high prices over the past year. Consumer Price Index (CPI) data released on Tuesday showed that prices for a range of goods and services rose by 6.4% over the past 12 months, down slightly from an annual rate of 6.5% in December and a 40-year high of 9.1% in June. Core CPI, a measure of inflation that strips away volatile food and energy prices, rose by 0.4% for the second month in a row. That put the annual core CPI inflation rate at 5.6%.
On a month-by-month basis, however, prices increased by 0.5% in January compared with a slower gain of 0.1% in December. The acceleration was driven by shelter costs. Americans have been struggling with soaring prices since last year, resulting in a decline in the real value of their income despite historic wage increases. High inflation has also amplified the risk of a recession.