The Consumer Price Index increased 0.3% in January, according to the U.S. Bureau of Labor Statistics. Over the last 12 months, the-all items index increased 3.1% before seasonal adjustment, down slightly from the 3.4% increase for the 12 months ending in December. Inflation continues to remain above the Federal Reserve’s 2% annual inflation target.   

The index for shelter continued to rise in January, contributing two-thirds of the monthly all-items increase. The food index increased by 0.4% while the energy index fell by 0.9% due to decreases in gasoline prices. Click here for the press release.   

The stock market reacted to the higher than anticipated numbers with a its worst day since March 2023, as it means that the Federal Reserve is unlikely to begin cutting rates until June or July at the earliest.