The consumer price index increased 3% in January from a year ago, Wednesday’s report from the Labor Department showed, up from 2.9% the previous month.

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,

US wholesale inflation remained stubbornly elevated last month, another sign that even higher prices could be ahead for American shoppers.

An inflation gauge closely watched by the Federal Reserve rose slightly last month, the latest sign that some consumer prices remain stubbornly elevated, even as inflation is cooling in fits and starts.