Inflation Rose in January

The Bureau of Labor Statistics (BLS) released a report on Wednesday showing that inflation rose in January.

The Details: The report showed the consumer price index (CPI), which measures the cost of everyday items like groceries, gasoline, and rent, rose 0.5% from December to January, and 3% for the 12 months ended in January. 

For Context: CPI figures were hotter than expected by economists polled by the London Stock Exchange Group, who predicted a monthly increase of .3% and a year-over-year increase of 2.9%. The Federal Reserve currently has a pause on plans to cut interest rates.

Key Quotes: Kevin Hassett, director of the White House National Economic Council, said that “Trump administration’s supply-side tax cuts, regulatory policies and desire to increase domestic drilling could reduce prices further.” Trump, in a post on Truth Social, called for lower interest rates.

How the Media Covered It: Fox Business (Lean Right bias) highlighted that high prices “continued to strain Americans' household finances” as the Federal Reserve “weighs a continued pause” on interest cuts. CNN (Lean Left) quoted Wolf Research’s chief economist Stephanie Roth saying, “There is nothing in the tariff agenda that will make prices lower for consumers.” It also reported that US stocks dropped on Wednesday, with the Dow opening 395 down. CNBC (Center) focused on how this spike affects Americans, as “CPI increase entirely offset the 0.5% move higher in average hourly earnings,” according to another BLS release.