Economy

US Inflation Climbs to 3% in January, Surpassing Market Expectations

US Inflation Rate Rises to 3% in January

The United States has witnessed an increase in its annual inflation rate, reaching 3.0% in January, a slight uptick from December's 2.9%. This development, reported by the Department of Labor Statistics, exceeded market expectations and highlighted a 0.5% month-on-month rise in the Consumer Price Index (CPI).

Energy and Food Prices Contribute to Inflation

Breaking down the CPI, the energy index saw a 1.1% increase monthly and a 1.0% rise annually. Similarly, the food index experienced a 0.4% monthly growth, with a 1.0% increase compared to January 2024.

Core CPI Sees Significant Growth

Excluding the volatile food and energy sectors, the core CPI still showed notable growth, with a 0.4% increase month-on-month and a 3.3% rise year-on-year, indicating a broad-based inflationary pressure across the economy.