The annual inflation rate in the U.S. fell to 3.1% in January following a 3.4% increase in December but came higher than forecasts of 2.9%. Compared to the previous month, the consumer price index (CPI) edged up 0.3%, the most in four months, and above forecasts of 0.2%.
Annual core inflation, minus food and energy prices, held at 3.9%, compared to expectations it would slow to 3.7%. The monthly core CPI rate rose 0.4%.
The food price index rose 0.4% on a monthly basis and 2.6% annually in January. Food at home (grocery store) prices increased 0.4% last month, while food away from home (restaurant) prices rose 0.5%. On an annualized basis, grocery prices increased 1.2%, while restaurant prices jumped 5.1%.
The energy index fell 0.9% in January, with gasoline down 3.3%. The annual energy index dropped 4.6%, with gasoline prices down 6.4% from year-ago.
Following the stronger-than-expected inflation data, traders increased odds the Fed will wait until June before cutting interest rates.
