Inflation Jumps To 3% For The First Time Since June

Inflation in the United States increased to 3% in January, marking its highest level since June of the previous year. According to the latest Consumer Price Index (CPI) data released by the Bureau of Labor Statistics, consumer prices rose 0.5% from December, the fastest pace since September 2023. Economists had anticipated a modest increase of 0.3%, but the report showed a more significant rise across various categories.

The increase in inflation has caused concern among consumers, businesses, and investors. Chris Rupkey, chief economist at FwdBonds, commented, "The long national nightmare of inflation isn’t over yet for consumers, businesses, and investors."

Energy and food costs were significant contributors to the inflation increase, with egg prices rising 15.2% from December to January, largely due to the deadly avian flu. The core CPI, which excludes food and energy, also rose by 0.4% on a monthly basis, bringing the annual rate up to 3.3%.