Inflation rose to 3% in January

Official figures released this week show that the Consumer Price Index (CPI) rose for the fourth consecutive month in January, adding pressure on the Federal Reserve (Fed) to maintain its pause on rate cuts.

The Department of Labor explained that CPI, a measure of inflation, increased to 3.0% in January from a year earlier, rising slightly from 2.9% in December. This figure was slightly higher than analysts' forecasts, according to AFP.

The Office of Labor Statistics reported that the core index, which excludes food and energy, increased by 0.4% in January.

"The index for all items less food and energy rose 0.4 percent in January. Indexes that increased over the month include motor vehicle insurance, recreation, used cars and trucks, medical care, communication, and airline fares. The indexes for apparel, personal care, and household furnishings and operations were among the few major indexes that decreased in January," the bureau reported.

Additionally, the Bureau reported that the housing index rose by 0.4% in January, contributing nearly 30% of the overall monthly increase. The energy index also climbed 1.1% during the month, driven by a 1.8% rise in gasoline prices.