Inflation Inches Down to 3.1 Percent but Price Pressures Remain High

The annual rate of inflation came in hotter than economists expected at 3.1 percent in January, with some analysts expressing particular concern that the monthly pace of “core” inflation, which excludes food and energy, was much too high for comfort as it shows price pressures building steam. The consumer price index (CPI), a common measure of inflation, fell to 3.1 percent year-over-year in January, down from 3.4 percent in the prior month, according to a Feb. 13 report from the Bureau of Labor Statistics (BLS). The reading was higher than the 2.9 percent that markets expected. “Inflation—it’s like trying to lose 20lbs. The first 10 come off like butter. The last ten are a root canal,” Lawrence McDonald, former head of macro strategy at Soc Gen, said in a post on X, formerly Twitter....