Inflation Rate Increases 

The Consumer Price Index rose 0.5% in January, after increasing by only 0.1% in December, the U.S. Bureau of Labor Statistics reported. Consumer prices climbed 6.4%, well below the recent peak of 9.1% in June, yet it remains far above the Federal Reserve’s 2% annual inflation target. More expensive gas, food and clothing drove up last month’s figure. 

Tuesday’s consumer price report from the government showed that inflationary pressures in the U.S. economy remain stubborn and are likely to keep prices elevated well into this year. Rising costs will also keep pressure on the Federal Reserve to raise its benchmark interest rate further and to keep it there through year’s end. Click here to read more.