Inflation continues to vex the American consumer. Prices rose by 3.1% from January 2023 to January 2024, the Labor Department said Tuesday.

But not all the news was bad. And wages are catching up to inflation, giving consumers renewed confidence.

"People are becoming more optimistic about the outlook for inflation and are feeling better about it," said Mark Hamrick, senior economic analyst at Bankrate. "They're not thinking of it as sort of the burden on their back in the same way that they were."

Here's a rundown of how the January inflation report affects consumers.

Gas costs less

Gas prices dropped in January and on the year, a trend consumers have seen at the pumps.

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The gasoline index declined 3.3% from December to January and 6.4% from January 2023 to January 2024.

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Tuesday’s national gas price averaged $3.225 for a gallon of regular, according to AAA. That compares with $3.416 a year ago, although pump prices have nudged up in recent weeks.

Gas prices tend to bottom out at this time of the year because people drive less.

Dining out costs more

A federal index for “food away from home” rose for the month and year, signaling that Americans are paying more for dine-in and takeout.

Away-from-home food prices rose by 0.5% from December to January and by 5.1% from January 2023 to January 2024.

Reasons include rising labor and food costs for restaurant operators, according to the National Restaurant Association.

Housing costs more

America’s “shelter” index, which means housing, continues to rise.

The shelter index rose 0.6% from December to January and 6% from January 2023 to January 2024.

Housing demand remains high, Redfin reports, with more homes selling above the list price than below it. Many homeowners don’t want to sell because interest rates have been rising.

Auto insurance costs more

Motor vehicle insurance rose by a dramatic 1.4% in January and by an even more dramatic 20.6% from January 2023 to January 2024.

The average annual insurance premium is $2,543, up 26% over last year, according to a new report from Bankrate.

If you've noticed your insurance bill creeping up, now might be a good time to shop around, said Elizabeth Renter, data analyst at NerdWallet. Auto insurance "is easy to set and forget," she said, "but when prices are rising like this, it can pay to get quotes.”

Daniel de Visé covers personal finance for USA TODAY.

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