The consumer price index increased 3% in January from a year ago, Wednesday’s report from the Labor Department showed, up from 2.9% the previous month.

Consumer prices rose by 3 percent annually last month, higher than reported in December. Inflation heated up more than expected in January, as prices for groceries, housing and energy all rose for Americans in early 2025,

U.S. consumer prices in January increased by the most since August 2023 with Americans facing higher costs for housing and food, reinforcing the Federal Reserve's message that it was in no rush to resume cutting interest rates amid growing uncertainty over the economy.

US inflation accelerated last month as the cost of groceries and gasoline rose, a trend that will likely underscore the Federal Reserve’s resolve to delay any further interest rate cuts.