Americans are seeing some relief from lower gasoline prices, which the latest inflation data from the Labor Department shows have declined substantially over the last year.
The Bureau of Labor Statistics on Friday released the consumer price index (CPI) for January, which showed headline inflation was up 2.4% from a year ago, while core CPI, which excludes volatile measurements of food and energy, was up 2.5% in that period.
Energy prices fell 1.5% in January and have been largely flat over the last year, down just 0.1% in that period, with much of the downward pressure coming from falling gas prices.
The index for all types of gasoline showed prices fell 3.2% in the month of January and are down 7.5% in the last year, per the BLS data.
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In terms of what that decline looks like for Americans in terms of the price paid at the gas pump, data from the U.S. Energy Information Administration and Federal Reserve showed the average price of gas nationwide was $2.90 a gallon as of Feb. 10.
On that date last year, gas was $3.13 a gallon, which represents a decline of about 7.3% – roughly in line with the January CPI data.
The latest CPI inflation data showed relief in other categories of energy as well.
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Propane, kerosene and firewood costs declined 1.5% on a monthly basis and were down 7.9% from a year ago.
The price of fuel oil fell 5.7% in January and has decreased 4.2% over the last year.
While gas prices and those categories of energy have provided relief to consumers, other types of energy have seen prices surge, undercutting some of that relief.
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Electricity prices were little changed on a monthly basis and fell 0.1% on a monthly basis, but are up 6.3% in the last year.
Utility gas service costs jumped 1% in January and are 9.8% higher than last year – a substantial price hike for households relying on gas to help heat their homes this winter.
Raymond James chief economist Eugenio Aleman said in a note that the “picture for February’s CPI will probably be very different than January’s, as energy prices are probably going to show positive prints.”
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“However, we don’t expect increases in transportation services prices to remain as strong during the month, and thus, inflation’s behavior will probably depend on how strong the reversal in energy prices was in February and to what happens to shelter prices during the month,” he added.
