What you need to know about latest U.S. inflation report

The pace of consumer price increases eased again in January, the latest sign the high inflation that has gripped Americans for two years is slowing. At the same time, Tuesday’s consumer price report from the government showed inflationary pressures in the U.S. economy remain stubborn and are likely to fuel price spikes well into this year.

WHAT HAPPENED

The government said consumer prices rose 6.4% in January compared with 12 months earlier, down from 6.5% in December.

It was the seventh straight yearover-year slowdown and well below a recent peak of 9.1% in June.

On a monthly basis, consumer prices increased 0.5% from December to January, much higher than the 0.1% rise from November to December. More expensive gas, food and clothing contributed to inflation.

The figures showed services being a driver of higher prices more than goods.

WHAT’S NEXT

Economists expect inflation to fall to roughly 4% later this year. But it could plateau at that point so long as hiring and wage gains remain vigorous.

GEORGIA IMPACT

National Federation of Independent Businesses Georgia Director Hunter Loggins said in a news release that while Georgia’s economy is improving, “small business owners remain cautious.”

“Small business owners want certainty, but inflation and supply chain issues are still a challenge, and employers say they’re still having a tough time finding people to fill the positions that are available,” Loggins said.

Hiring in Georgia was strong in December, the most recent data available. The NFIB said its January survey showed small business optimism was up nationally in January but below its 49-year average sentiment.

Nationwide, 26% of business owners reported inflation as their top problem, but that was down six points from December.