US consumer prices continued their rise into the new year, as inflationary pressures maintained its grip on the economy and on the individual's wallet. Consumer prices rose a seasonally-adjusted 0.4% in January. The gain was mostly attributed to a 0.7% rise in both food and energy prices. Economists were expecting a 0.3% gain.
Core CPI was also up an alarming 0.3% for the month. Since core CPI strips out the more volatile measures of energy and food, a gain of 0.3% is not a good sign. Prices paid for medical care rose 0.5%, while prices for apparel were up 0.4%. Education and communication costs were up 0.4%
In the last year, the consumer price index is up 4.3%, while the core CPI is up 2.5%.
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