US inflation rises to 3% for first time since June

US INFLATION PICKED up broadly at the start of the year, further diminishing chances the Federal Reserve will cut interest rates anytime soon.

- AUGUSTA SARAIVA

The consumer price index rose 0.5% last month, the most since August 2023 and led by a range of household expenses like groceries and gas.

Shelter accounted for nearly 30% of the advance, according to the report from the Bureau of Labor Statistics on Wednesday.

Excluding often-volatile food and energy costs, the so-called core CPI also climbed by more than forecast.

That reflected higher prices for car insurance, airfares and a record monthly increase in the cost of prescription drugs.

Wednesday's report serves as further evidence that inflation progress is in danger of reversing — which, combined with a solid labor market, will likely keep the Fed on hold for the foreseeable future.