“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,

The Consumer Price Index for All Urban Consumers increased 0.5% on a seasonally adjusted basis in January, after rising 0.4% in December, the U.S. Bureau of Labor Statistics reported today.

U.S. stock futures tumbled and the dollar rose on Wednesday after data showed consumer inflation picked up more than expected in January, underscoring Federal Reserve Chair Jerome Powell's message that there is no rush to cut interest rates.