3%

U.S. inflation rose to 3% in January, strengthening the case for the Federal Reserve to extend a pause on interest rate cuts, reported the New York Times. The Consumer Price Index jumped more than expected, data from the Bureau of Labor Statistics showed on Wednesday, rising 0.5% from December in what was the fastest monthly increase since August 2023. Last month, the annual pace was 2.9%. “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% from December or 3.3% on a year-over-year basis, both higher than economists expected. The monthly increase in core prices was the highest since April 2023.

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