Southern California inflation rate hits 3-year low in January – Orange County Register

“Swift swings” takes a quick peek at one economic trend.

The number: Inflation, as measured by two Southern California slices of the Consumer Price Index, hit a three-year low in January.

The source: My trusty spreadsheet looked at CPIs for Los Angeles and Orange counties, a monthly tally, and bimonthly results for the Inland Empire that were released Tuesday, Feb. 13.

Quick analysis:  The average CPI gain for the two regions was 2.7% in January, the lowest since January 2021. US inflation last month was 3.1%.

That’s lower than 3.6% seen two months earlier or the 4.2% average for 2023 and 8.2% in 2022.

For January, inflation ran at 2.5% in LA/OC and 2.9% in the IE.

Slices

Look at two key categories of spending …

Groceries: Southern California averaged 1.6% hikes in the year ending in January vs. 1.9% two months earlier, 4.6% average for 2023 and 10.5% in 2022. Food-at-home inflation for January was 2.2% in LA/OC and 0.9% in IE.

Rent: Up 6% in a year for January vs. 7% two months earlier, 8.3% average for 2023 and 6.2% in 2022. By metro, up 4.6% in LA/OC and 7.4% in IE. Note: Numerous experts say this slow-moving measure of housing costs misses the smaller rent hikes currently being charged.

Caveats

Lowered inflation rates don’t make a dent in what consumers pay now.

What costs $100 in January 2021, now costs $116 in LA/OC and $120 in the IE.

Also, one federal yardstick of Southern California pay shows local private-sector wages are up 17% in the past three years.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com