Inflation increased in January, posing obstacle for tariff plans

Consumer prices rose 3% in January compared to a year ago, ticking up from the previous month and posing an obstacle for Trump administration tariff policies that many economists expect to raise some prices, government data on Wednesday showed. The inflation reading came in higher than economists had predicted.

The fresh data extends a bout of resurgent inflation that stretches back to last year. At recent meetings, the Federal Reserve has opted to hold interest rates steady in part out of concern regarding the stubborn price increases.

Core inflation -- a closely watched measure that strips out volatile food and energy prices -- increased 3.3% over the year ending in December, ticking lower than the previous month, the data showed. That gauge also sped up from the previous month.

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