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Inflation, as measured by the Consumer Price Index for all Urban Consumers (CPI-U), rose 3.0 percent nationwide over the 12 months ending in January ’25. Core inflation, which excludes the volatile food and energy categories, rose 3.3 percent during the same period. (Note: The CPI numbers reported here are not seasonally adjusted.)

Annual inflation was slightly higher than the 2.9 percent expected by economists in a recent Reuters survey. A 1.9 percent year-over-year uptick in the price of groceries (driven largely by an outbreak of bird flu sharply increasing the price of eggs) and a 1.0 percent uptick in the price of used cars and trucks were two notable contributors. The Federal Reserve is likely to continue its pause on cutting interest rates until inflation gets closer to its 2 percent target.

Utility gas, housing, food away from home (i.e. meals at restaurants), and transportation saw the largest year-over-year price increases of three percent or more. Medical care, food at home (i.e. groceries), electricity, recreation, alcoholic beverages, used cars, household furnishings, apparel, and education services saw increases of less than three percent. Gasoline and new vehicles saw prices decline.

The next release of CPI data will be on Wednesday, March 12, 2025.

Prepared by Greater Houston Partnership Research.

Colin Baker
Manager of Economic Research
bakerc@houston.org

Clara Richardson
Analyst, Research
crichardson@houston.org