Inflation rose to 5.4% in January, according to key gauge watched by Fed

Inflation unexpectedly rose to 5.4% annually in January, as measured by the gauge favored by the Federal Reserve.

The rise in the personal consumption expenditures price index reported Friday morning by the Bureau of Economic Analysis is another sign that inflationary pressures are not abating in the face of the Federal Reserve’s campaign to slow price gains by hiking interest rates. Inflation is still running much hotter than the central bank’s target and damaging household purchasing power.