Inflation & Prices
US Inflation Tops Forecasts in Blow to Fed Rate-Cut Hopes
- Core consumer prices rose by most in eight months in January
- Traders delay bets on first rate cut and mark down March odds
This article is for subscribers only.
US consumer prices jumped at the start of the year, stalling recent disinflation progress and likely delaying any Federal Reserve interest-rate cuts.
The consumer price index rose by more than forecast across the board in January — on a monthly and annual basis — as did the core measures, which strip out food and energy costs. A key subset of services prices advanced by the most in nearly two years, and shelter costs heated up, government data showed Tuesday.