Inflation: Consumer prices rise 3.1% in January, defying forecasts for a faster slowdown


US consumer prices rose higher than expected in January, according to the latest data from the Bureau of Labor Statistics released Tuesday morning.

The Consumer Price Index (CPI) rose 0.3% over last month and 3.1% over the prior year in January, slightly higher than December’s 0.2% month-over-month increase but a deceleration from December’s 3.4% annual gain.

Both measures were slightly higher compared to economist forecasts of a 0.2% month-over-month increase and a 2.9% annual increase, according to data from Bloomberg.

On a “core” basis, which strips out the more volatile costs of food and gas, prices in January climbed 0.4% over the prior month and 3.9% over last year.

The monthly jump represented a slight acceleration from December’s 0.3% increase and was the hottest monthly core reading since April. January’s annual core increase matched December’s.

Both measures were also hotter than economists expectated.

Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canal, LinkedIn, and email her at

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