No relief: Inflation unexpectedly heated up last month
Inflation saw a surprising increase last month, as the price of groceries, gasoline and shelter all climbed.
Consumer prices in January were up 3% from a year ago, according to a report Wednesday from the Labor Department. That’s a bigger annual increase than the previous month. Prices rose 0.5% between December and January alone.
Loading…
Forecasters had expected to see some moderation in price hikes, but inflation remained stubbornly high. The news sent stock markets tumbling, with the Dow Jones Industrial Average falling more than 350 points in the first half-hour of trading.
Egg prices surged
Egg prices saw their biggest jump in nearly a decade last month, rising more than 15% after avian flu forced egg farmers to cull millions of laying hens in December. Overall grocery prices rose 0.5% in January.
Stripping out food and energy prices, which bounce around a lot, “core inflation” was also higher than forecasters had expected, at 3.3%. The price of auto insurance, used cars and airline tickets all rose last month.
President Trump’s new tariffs could put even more upward pressure on prices. On Monday, Trump ordered a 25% tax on all imported steel and aluminum, which could raise the cost of everything from automobiles to canned soup, soft drinks and beer. Trump had earlier imposed a 10% tariff on all imports from China and has threatened additional tariffs on other imports.
The Federal Reserve had already signaled that it planned to take its time before making any further cuts to interest rates. The sticky inflation data is likely to make the central bank even more cautious.
Legal experts condemn Apple bowing to White House’s request to remove ICE tracking app
It's the latest example of tech giants bowing to pressure from the Trump administration. Legal experts say the developer of the app has free speech rights that may have been violated.
Denmark prepares for a Russian ‘hybrid war’ after repeated drone spottings
Many Danes are rethinking their personal security, and stocking up on emergency supplies, amid unidentified drone appearances. Denmark's leaders warn that Russia is waging a "hybrid war."
Space Command is moving jobs to Huntsville. Will workers move with it?
An Inspector General’s report last year revealed Space Command leadership worried civilian workers would not relocate to Alabama.
Sean Combs sentenced to over four years in prison for prostitution-related charges
Combs had been convicted in July on two counts of transportation for prostitution. During his sentencing hearing he spoke at length for the first time in the trial, addressing the judge at length.
Shutdown has already delayed the jobs report. More critical reports could be held up
The government's monthly jobs report was not published Friday as a result of the federal shutdown. That's left businesses and policymakers in the dark about the strength of the U.S. job market.
Supreme Court to hear challenge to Hawaii’s limits on guns
At issue is the state law that bans guns on private property that is open to the public — places like clubs, bars and restaurants — unless the property's owners have allowed them.
