U.S. Jewelry Price Inflation -2% in January

RAPAPORT... The U.S. consumer price index (CPI) for jewelry declined 1.7 percent year on year to 173.78 points in January, the lowest index reading to be posted since July 2012. The highest CPI for jewelry was 183.19 points in January 2012.

Nonetheless, the jewelry CPI  in January marked the 36th consecutive month with a reading of more than 170 points, reflecting its continuing maintenance of a historically strong inflation trend. The CPI for watches was basically flat in January, down by just 0.3 percent, at 120 points or four points lower than the record high of 124.3 that was just set in July 2013.

Continued price pressures on industry commodities contributed to a  lower jewelry price index during the month. The price for gold in January was about 18 percent lower year on year, while platinum was down 12 percent. The RapNet Diamond Index (RAPI), the global benchmark for polished diamond prices, fell 3.4 percent year on year for 1-carat diamonds, while RAPI for 3-carat diamonds dropped 3.5 percent. RAPI for 0.50-carat stones increased 1.7 percent and the index jumped 10.9 percent for 0.30-carat diamonds.
 
Meanwhile, the CPI for all product categories in January increased 1.6 percent year on year to set a new record high of 234.93 points.