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WASHINGTON, D.C. — US consumer inflation unexpectedly accelerated last month, according to government data published on Wednesday, adding to pressure on the Federal Reserve (Fed) to continue its rate cut pause.
The consumer price index edged up to 3.0 percent in January from a year ago, rising slightly from 2.9 percent in December, the Labor Department said in a statement.
This was slightly above the median forecast of 2.8 percent predicted by economists surveyed by Dow Jones Newswires and The Wall Street Journal.
The data will likely fuel calls for the Fed — the independent US central bank — to hold its key lending rate at between 4.25 and 4.50 percent as it waits for prices to ease.
The Fed has a long-term inflation target of 2 percent, measured against a different inflation gauge, and aims to hit it primarily by raising and lowering short-term interest rates.
These actions influence the cost of borrowing for consumers and businesses alike.
Another worrying data point for the Fed in the data published on Wednesday was the slight uptick to annual inflation excluding volatile food and energy costs, which also accelerated slightly to 3.3 percent.
On a monthly basis, inflation increased by 0.5 percent in January, and by 0.3 percent excluding food and energy.
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Credit belongs to : www.manilatimes.net
