The arguably more important measure of core inflation, which excludes price changes in the often volatile food and energy categories, increased 3.3% year-over-year in January, higher than forecasts of 3.1%. And core prices rose 0.4% from December to January, compared to estimates of 0.3%.

Inflation heated up more than expected in January, as prices for groceries, housing and energy all rose for Americans in early 2025, complicating President Donald Trump’s agenda.

Consumers are seeing no relief from high prices as shelter, transportation and food costs drove inflation in January.

Consumer prices rose 3% in January compared to a year ago, ticking up from the previous month and posing an obstacle for Trump administration tariff policies that many economists expect to raise some prices,

Price growth sped up unexpectedly in January, posing an early challenge to President Donald Trump's economic agenda.