The bureau of labor statistics published last week, on January 14th its report on the consumer price index. The report showed an increase in the CPI by 0.5 percent points.
Thus the current US inflation rate on a yearly scale increased by 1.5 percent before seasonal adjustments.
The main cause of inflation during December is the hike in energy prices in the US: according to the report, the energy index increased during December by 4.6 percent, and gasoline index accounts for nearly 80 percent of CPI seasonally adjusted incline with a 8.5% rise.
Consider that average crude oil price (WTI) during December rose by 5.9% compare to November average, and the Henry Hub average natural gas spot price of December rose by 14.2% compare to November.
This seasonality is pretty common as the winter time drives demand for energy higher. We should probably see a correction to this price hike as the cold weather will subside in the next couple of months.
Currently, as of January 14th, the average crude oil price (WTI) is at 90.28$/b which is a rise of 1.3%, while the average natural gas Henry Hub is at 4.49$/mmbtu – a 5.8% rise compare to the average spot price in December.
Thus, based on the figures above, the US inflation rate will probably continue rising during January based on the ongoing average rise in major energy commodities prices.
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