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Economics

Inflation Heats Up in January

A larger-than-expected rise in the consumer price index for the month may limit future rate cuts by the Fed

by BW, Standard & Poor's, and Action Economics staff

Inflation is showing renewed signs of life, much to the chagrin of financial markets and the Federal Reserve. A report released Feb. 20 showed that the U.S. consumer price index (CPI) rose 0.4% in January, while the core rate, excluding food and fuel, rose 0.3%. Markets expected tamer readings of 0.3% and 0.2%, respectively.