Thu, 13 Feb 2025

Thu, 13 Feb 2025 US inflation unexpectedly increases

US inflation increased by more than expected last month, pushing up the cost of living for Americans.

* US inflation rose to 3% in January, its highest rate in six months and above the expected 2.9%.
* The increase was driven by higher egg and energy prices, with eggs surging over 15% amid bird flu shortages.
* Grocery prices climbed 0.5%, while core inflation (excluding food and energy) rose to 0.4%, its fastest pace since March.
* Economists say the rise in inflation could pressure US President Donald Trump to reconsider his plans for higher tariffs on imports, which could push up prices further.
* The Federal Reserve's decision to hold interest rates unchanged last month is being seen as a challenge to Trump's economic policies.
* Some analysts believe that the recent increase in inflation and potential impact of Trump's tariff plans could mean no rate cuts this year.
* Wall Street stocks ended lower, while US government debt yields rose as investors bet on higher borrowing costs.
  >>