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 Trump rolls out myriad import tariffs.
An underlying inflation measure also accelerated.
Some economists said the the larger-than-expected price surge takes additional Federal Reserve interest rate cuts off the table until at least year’s end. Others said the figures may not be as alarming as they appear because of measurement issues the government often faces early in the year.
Consumer prices overall increased 3% from a year earlier, up from 2.9% the previous month, according to the Labor Department’s consumer price index, a measure of goods and service costs across the U.S. That’s the most since June and above the 2.9% expected by economists surveyed by Bloomberg.
On a monthly basis, costs jumped 0.5% – the most since August 2023 – up from 0.4% in December. Eggs and used cars were among the biggest contributors.
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