US Inflation Rate – January 2023

Author: Jason Coles

Updated On:

Updated On:

In January 2023, the inflation rate in the U.S. increased by 0.5% from the previous month, representing an increase of 6.4% from the inflation rate 12 months ago, in January 2022.

The January 2023 Consumer Price Index (CPI) for the U.S. is 299.17. A year ago, in January 2022, the CPI was 281.15. If you want to learn more about the inflation rate in the US, how it is calculated and measured, and the historic inflation rate over the past 20+ years, we have a detailed article that charts the yearly and monthly rates.

Yearly Inflation Increases by Category

The major inflation categories and their 12-month change for January 2023 include the following:

  • Food at Home (Groceries): 11.3% increase
  • Food Away from Home (Dining Out): 8.2% increase
  • Energy: 8.7% increase
  • Commodities (less food and energy commodities): 1.4% increase
  • Services (less energy services): 7.2% increase

These cost of living increases reported by the U.S. Bureau of Labor Statistics (BLS) highlight the year-over-year increase in the CPI.

January 2023 Monthly Inflation Increases

On a monthly basis, the increase from December 2022 inflation to January 2023 for the one-month period is as follows:

  • Food at Home (Groceries): 0.4% increase
  • Food Away from Home (Dining Out): 0.6% increase
  • Energy Prices: 2.0% increase
  • Commodities (less food and energy commodities): 0.1% increase
  • Services (less energy services): 0.5% increase

The graphic below breaks down the January 2023 US inflation rate showing the 12-month increase from January 2022 to January 2023, the one-month inflation rate increase from December 2022 to January 2023, and what the inflation rate was this time last year.

Factors that Drove US Inflation in January 2023

Some of the key factors that drove the increase in the inflation rate for January include:

  • Fuel Oil/Gas Prices: Gas prices tend to be volatile given the geopolitical complications globally, especially where large quantities of oil and natural gas are extracted. Demand for oil and gas has been falling in January 2023, and even in previous months and commodities experts and traders expect them to continue following. Late in December, the U.S. oil price benchmark, the West Texas Intermediate, fell to $81 a barrel.
  • Food Prices: One of the largest factors in the inflation rate increasing in January was the increase in food prices. Despite not being tremendous increases, both the cost of eating in (grocery shopping) and the price of eating out at restaurants in January have increased, which has led to an overall impact on inflation.
  • Energy Price Increases: The overall energy price increased by 2% in January. This is rather significant when you compare it to previous months and is just the second time in the last 12-month period that the energy prices have increased within a month, rather than decreased.

The latest Federal Reserve press release came out on February 1, 2023, in which they discuss the ongoing inflation situation, whilst providing goals and solutions to combat the current economic hardships.

February 2023 Inflation Rate Update

Foreign USA’s February inflation report will be released on March 14, 2023. This update will publicize the current inflation rate over the previous 12 months, ending in January 2023.

US Inflation Rates

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Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S. who refer his services to their clients regularly, Jason has written over 1,335 business plans across the past 17+ years for start-up companies and franchises looking to expand their footprint in the United States. Jason is considered a seasoned expert in his field. He creates detailed business plans for his clients that include five-year financial projections, market and industry analysis reports, demographic studies, organizational charts, job descriptions, employee hiring plans, and more.