Investing.com - U.S. consumer prices rose more than expected in January, underlining the view that the Federal Reserve will be forced to tighten policy more aggressively this year.
The Commerce Department said that consumer prices rose by a seasonally adjusted 0.5% last month, above forecasts for an increase of 0.3% and following a gain of 0.2% in December.
Year-over-year, consumer prices were 2.1% higher from the same month a year earlier, beating expectations for a gain of 1.9% and after rising 2.1% in the preceding month.
Consumer prices, excluding food and energy costs, inched up by a seasonally adjusted 0.3%, compared to forecasts for 0.2%. Core consumer prices rose 0.2% in December.
Core CPI increased at annualized rate of 1.8% last month, unchanged from a month earlier.
The data contributed to the sentiment that inflation is picking up and higher interest rates are on the horizon.