The expenditure weights used to calculate the CPI were also updated with the January report. The new weights, which were published on Friday, reflect consumer spending in 2021.
The share of housing in the CPI has now been increased, but the weightings for transport and food have been reduced. The revision, updated seasonal factors and new weightings prompted some economists to bump up their CPI forecasts.
Still, inflation is slowing, which should allow the Fed to continue with its modest pace of rate hikes next month.
In the 12 months to January, CPI increased by 6.4%. This was the smallest gain since October 2021 and a 6.5% increase in December. The annual CPI rose to 9.1% in June, the biggest increase since November 1981.
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