No relief: inflation unexpectedly ignited last month – public radio in South Carolina

Inflation reported a surprising increase last month as the price of grocery, gasoline and shelter climbed.

Consumer prices in January increased by 3% compared to a year ago, according to a Wednesday report by the Ministry of Labor. This is a larger annual increase than the previous month. Prices increased by 0.5% between December and January alone.

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Forecasters expected to see some moderation of price increases, but inflation remained stubbornly high. The news sends the stock markets, with Dow Jones Industrial the average fell with over 350 points in the first half hour of trade.

Egg prices jumped

Egg prices saw their largest leap in nearly a decade last month, increasing over 15%after forcing the birds of the birds in December forced farmers to collect millions of hens. Total food prices increased by 0.5% in January.

The refusal of food and energy prices, which bounce around many, “basic inflation” was also higher than the forecasts expected of 3.3%. The price of car insurance, used cars and airline tickets all rose last month.

President Trump’s new tariffs can make even more pricing. On Monday, Trump ordered a 25% tax on all imported steel and aluminum, which can raise the price of everything from cars to canned soup, soft drinks and beer. Earlier, Trump imposed a 10% tariff for all imports from China and threatened additional tariffs for other imports.

The Federal Reserve has already signaled that it plans to take its time before making additional interest cuts. The sticky inflation data will probably make the Central Bank even more preferable.

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