US annual consumer inflation unexpectedly ticks up to 3% in December

Consumer price index monthly increases 0.5%

By Tuba Ongun

Consumer inflation in the US unexpectedly inched up to 3% in January, according to data released Wednesday.

The market expected the figure to remain unchanged at 2.9%, recorded in December.

On a monthly basis, CPI showed an increase of 0.5%, following a 0.4% gain in December. Monthly inflation bucked the market forecast of a 0.3% hike.

"The index for shelter rose 0.4% in January, accounting for nearly 30% of the monthly all items increase," the Labor Department's Bureau of Labor Statistics said in a statement.

"The energy index rose 1.1% over the month, as the gasoline index increased 1.8%," it added. "The index for food also increased in January, rising 0.4% as the index for food at home rose 0.5% and the index for food away from home increased 0.2%."

Core CPI, which excludes volatile food and energy prices, gained 0.4% in January from the prior month, exceeding market estimates of 0.3% but slightly gaining pace from December's 0.2% rise.

Annually, core CPI climbed 3.3% in January, above expectations of 3.1%, and following a 3.2% year-on-year gain recorded in the previous month.

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