“Core” C.P.I., which more closely reflects underlying inflation by removing volatile food and energy prices, also showed little improvement. It rose 0.4 percent from December or 3.3 percent on a year-over-year basis, both higher than economists expected. The monthly increase in core prices was the highest since April 2023.

CPI data will make the Federal Reserve more cautious about inflation risks, with more Fed watchers saying the central bank wouldn’t cut rates at all this year. U.S. headline CPI inflation rose 0.5% in January,

Inflation rose to 3% in January, its highest rate for six months, and above the 2.9% expected by economists. Price rises for food and energy both helped drive up the overall rate of price increases. The rise comes weeks after the US central bank decided to hold interest rates,

Higher inflation readings left Fed officials telling lawmakers, business executives and the public that they may be waiting longer than they had thought for relief from high interest rates.

Federal Reserve Chair Jerome Powell said the latest consumer price data show that while the central bank has made substantial progress toward taming inflation, there is still more work to do.

Federal Reserve Chairman Jerome Powell said Wednesday the central bank has not been cut off from any data it needs to do its work. Speaking before a House panel as the Trump administration has been stripping government websites from various data sets,

January inflation ran hot, and the odds of Fed interest rate cuts fell as Consumer Price Index total CPI inflation accelerated to 3.0%, the highest rate since June 2024.

Inflation picked up for a fourth straight month in January amid another rise in in food and energy costs, possibly setting the stage for a year of halting progress in the battle to slow consumer price increases as President Donald Trump rolls out myriad import tariffs.