A 3.0 percent jump in energy prices in January caused the overall Consumer Price Index (CPI) to rise by 0.5 percent in the month. This brought its year–over–year increase to 2.1 percent. However, core inflation remained modest, rising 0.3 percent in the month, with the year–over–year rate at just 1.8 percent.

Even this 1.8 percent rise is overwhelmingly due to the role of shelter. The core index, excluding shelter, has risen by 0.8 percent over the last year. There is no evidence whatsoever of accelerating inflation in the core index outside of shelter. Since the rise in the price of shelter is primarily the result of the limited supply of land in desirable areas, the inflation in this sector is not the result of conventional inflationary dynamics.