(The Center Square) – Prices rose more than expected last month, newly released inflation data shows.
The Consumer Price Index, a leading marker of inflation, rose 0.5% in January, according to the U.S. Bureau of Labor Statistics.
The January increase contributed to a 3% increase in the last 12 months, the highest level since June. The rising cost of shelter drove much of the increase.
“The index for shelter rose 0.4% in January, accounting for nearly 30% of the monthly all items increase,” BLS said. “The energy index rose 1.1% over the month, as the gasoline index increased 1.8%. The index for food also increased in January, rising 0.4% as the index for food at home rose 0.5% and the index for food away from home increased 0.2%.”
Experts said the data was likely not related to Trump’s tariffs, though future data could reflect the tariffs.
“While core services, such as shelter, transportation, and medical care carried the bulk of weight in January’s price increases, there was a notable increase in used vehicle prices and prescription drugs,” Charlie Ripley, senior investment strategist for Allianz Investment Management in Minneapolis, said in a statement. “Today’s data reaffirms Powell’s decision to put rate cuts on the back burner for an extended period of time. Overall, today’s inflation data should force market participants to re-think the Fed’s ability to cut rates this year, especially considering the rise in prices is likely unrelated to any tariff activity from the White House.”
President Donald Trump said Wednesday that he wants lower interest rates.
“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!!,” he wrote in a post on Truth Social.