The core CPI in the United States increased as expected in January on a month-on-month basis, but the year-on-year growth rate hit a new low for 2021.

Core inflation in the United States slightly accelerated at the beginning of this year, in line with expectations, as the increase in service costs completely offset the stable food prices. Data released by the US Bureau of Labor Statistics on Friday showed that the core Consumer Price Index, which excludes volatile food and energy prices, rose 0.3% from December last year, the largest increase since August last year. At the same time, the year-on-year increase in core CPI hit the lowest level since 2021. The slight increase in inflation reflected rising prices in categories such as airfare, personal care, leisure and entertainment, healthcare, and communication. However, prices for used cars and trucks, household items, and car insurance fell last month. January is typically a month for businesses to adjust prices, and some economists had expected companies to pass on more of the costs related to tariffs to consumers last month. Despite price increases in categories such as clothing and sporting goods, this report shows that overall, companies are still largely "shielding" American consumers from cost pressures.