Consumer prices rose as expected last month, indicating the pace of inflation remained unchanged in January after accelerating recently.

Consumer prices rose by 3.0 percent annually last month, hotter than reported in December. Inflation heated up more than expected in January, as prices for groceries, housing and energy all picked up for Americans in early 2025,

The Consumer Price Index rose 0.5%, while a measure that strips out energy and food rose 0.4%, the Labor Department said on Wednesday. Why it matters: It's a warning to the White House and the Fed about inflation's potential staying power across the economy.