Inflation rises 3% in January, hotter than expected

Inflation ticked higher in January as stubbornly high prices continued to strain Americans' household finances as the Federal Reserve weighs a continued pause to its interest rate cut plans.

The Labor Department on Wednesday said that the consumer price index — a broad measure of how much everyday goods like gasoline, groceries and rent cost — increased 0.5% in January while it rose 3% on an annual basis. The annual figure is the highest since June 2024.