The Consumer Price Index for All Urban Consumers increased 0.5% on a seasonally adjusted basis in January, after rising 0.4% in December, the U.S. Bureau of Labor Statistics reported today.

Consumer prices rose by 3 percent annually last month, higher than reported in December. Inflation heated up more than expected in January, as prices for groceries, housing and energy all rose for Americans in early 2025,

CPI data will make the Federal Reserve more cautious about inflation risks, with more Fed watchers saying the central bank wouldn’t cut rates at all this year. U.S. headline CPI inflation rose 0.5% in January,

This week’s forthcoming Consumer Price Index report could show easing year-on-year inflation, increasing the potential for Fed interest rate cuts in May or June 2025.

The Bureau of Labor Statistics will release the consumer price index report for January on Wednesday, Feb. 12.