“In
recent
years,
residual
seasonality,
along
with
delayed
price
adjustments
in
response
to
pandemic-era
shocks,
have
led
to
upside
CPI
surprises
in
January,”
he
told

USA
Today.
“These
were
no
longer
on
full
display
this
time
around,
further
reinforcing
our
view
(that)
tariff-induced
price
increases
on
the
goods
side
are
largely
behind
us.

“But
we
aren’t
changing
the
baseline
forecast
for
monetary
policy
based
on
one
inflation
reading.
Lingering
distortions
from
the
shutdown
in
the
price
data,
prospects
for
solid
growth
this
year
and
a
stabilizing
job
market
will
keep
the
central
bank
on
hold
until
June.”

The
index
for
owners’
equivalent
rent
also
rose
0.2%
in
January,
as
did
the
index
for
rent.
The
lodging
away
from
home
index
fell
0.1%
over
the
month,
according
to
the

report.

Although
prices
continue
to
climb,
inflation
remains
well
below
its
2022
peak
and
below
levels
some
economists
feared
after
President
Donald
Trump
imposed
sweeping

tariffs
on
most
U.S.
trading
partners
last
year.

Still,
concerns
about

affordability
persist.

A

poll
conducted
by
The
New
York
Times
and
the

Siena
Research
Institute
released
in
late-January
found
that
54%
of
respondents
consider
housing
unaffordable.
Another
31%
described
it
as
somewhat
affordable,
while
only
13%
said
it
is
mostly
affordable.

Core
inflation
—
which
excludes
food
and
energy
—
slowed
to
2.5%
over
the
past
12
months,
down
from
2.6%
in
December.

Energy
prices
were
mixed.
Gasoline
prices
fell
3.2%
in
January
and
are
down
7.5%
from
a
year
earlier.

Electricity
prices
climbed
6.3%
over
the
past
year
and
natural
gas
rose
9.8%,
the
Bureau
of
Labor
Statistics
said.