January inflation ran hot, and the odds of Fed interest rate cuts fell as Consumer Price Index total CPI inflation accelerated to 3.0%, the highest rate since June 2024.

Inflation picked up for a fourth straight month in January amid another rise in in food and energy costs, possibly setting the stage for a year of halting progress in the battle to slow consumer price increases as President Donald Trump rolls out myriad import tariffs.

U.S. wholesale prices rose more than expected last month, signaling that progress fighting inflation may have stalled and undercutting expectations for lower interest rates.

Inflation picked up more than expected in January, returning to a 3% rate for the first time in seven months. The continued stalled progress on taming price growth will keep central bank officials from lowering interest rates and could even raise the specter of rate hikes.