Inflation Hotter Than Expected at 3.1 Percent; Price Pressures Remain High

Inflation has eased to 3.1 percent, but the month-over-month data shows inflationary pressures remain elevated.

Consumers shop for groceries at a retail chain store in Rosemead, Calif., on Dec. 12, 2023. Frederic J. Brown/AFP via Getty Images

The annual rate of inflation came in hotter than economists expected at 3.1 percent in January, with some analysts expressing particular concern that the monthly pace of “core” inflation, which excludes food and energy, was much too high for comfort as it shows price pressures building steam.

The consumer price index (CPI), a common measure of inflation, fell to 3.1 percent year-over-year in January, from 3.4 percent in December, according to a Feb. 13 report from the Bureau of Labor Statistics (BLS).