Gas prices declined in January, dragging down the energy index for the month, according to new government data released Tuesday.
The gasoline index decreased 3.3% in January from the previous month, marking a steeper drop than December's 0.6%, according to the Bureau of Labor Statistics.
BLS noted that before seasonal adjustment, gasoline prices fell 1.5% last month.
The decline helped send the energy index down 0.9% in January from the previous month. In December, the index slid 0.2%.
During the winter, gasoline prices tend to fall due to the wide use of a less expensive blend and lower seasonal demand as drivers stay put.
In early January, prices at the pump stalled at $3.07 a gallon after dropping by more than $0.80 per gallon from their September 2023 peak.
Gas prices have reversed their downward trend, ticking higher over the past several weeks as oil has also risen.
On Tuesday, the national average for gasoline stood at $3.23, according to AAA data.
Gas prices weren't the only segment within the energy index to fall. The fuel oil index decreased 4.5% in January. Natural gas increased 2%, and electricity jumped 1.2% on a month-over-month basis.
Over the past year, the energy index fell 4.6%. All the components fell on a year-over-year basis except for electricity, which rose 3.8%.
The price declines within energy weren't enough to offset a hotter-than-expected inflation print for the month. Shelter and food costs made up the bulk of the rise in prices. Excluding food and energy costs, prices in January climbed 0.4% over the prior month and 3.9% over last year.
Read more about the latest inflation data and what it means for markets:
Inflation: Consumer prices rise 3.1% in January, defying forecasts for a faster slowdown
Hot inflation reading reinforces the Fed's cautious approach to rate cuts in 2024
Cost of eating out continues to rise, a potential hit to restaurant chains
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on Twitter at @ines_ferre.
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