• From Axios:
The Consumer Price Index rose 3.1% in the 12 months through January — a bigger jump than expected —while the monthly gain sped up, the Labor Department said on Tuesday.
"Why it matters: While price pressures have moderated overall, getting inflation completely back to normal may be more difficult than economists anticipated.
"By the numbers: The 3.1% rise in overall CPI compares to the 3.4% increase in December … Meanwhile, core CPI — which excludes energy and food costs — rose 3.9% in the year through January, the same increase as December. Economic policymakers see this measure as a better gauge of underlying inflation."
Axios notes that "the inflation slowdown over the past year has so far happened alongside a solid economy — bucking predictions that the U.S. would need to enter a recession for price pressures to ebb. The big question is whether that will continue in 2024.
"The Federal Reserve is contemplating when and by how much to slash the interest rates that they hiked rapidly in recent years to tamp inflation … In recent days, Fed officials say they want more evidence that the war on inflation is won before lowering interest rates."