Inflation surprisingly rose in January, according to the Fed’s preferred gauge

The Federal Reserve’s preferred inflation gauge heated up unexpectedly in January, showing the continued strength of the US economy – and that rising prices won’t be so easily defeated.

Inflation picked up speed in January as the Personal Consumption Expenditures price index rose 5.4% in January from a year earlier, the Commerce Department’s Bureau of Economic Analysis reported Friday. In December, prices rose 5.3% annually.

In January alone, prices were up 0.6% from the prior month, a higher monthly gain from December’s increase of 0.2%.