Consumer prices in the U.S. increased by more than expected in the month of January, according to a report released by the Labor Department on Wednesday.
The Labor Department said its consumer price index advanced by 0.5 percent in January after climbing by 0.4 percent in December. Economists had expected consumer prices to rise by 0.3 percent.
The report also said the annual rate of consumer price growth accelerated to 3.0 percent in January from 2.9 percent in December, while economists had expected the pace of growth to remain unchanged.
The bigger than expected monthly increase by consumer prices partly reflected a continued surge by energy prices, which shot up by 1.1 percent in January after spiking by 2.4 percent in December.
Excluding the jump by energy prices as well as a 0.4 percent increase by food prices, core consumer prices rose by 0.4 percent in January after inching up by 0.2 percent in December. Core prices were expected to increase by 0.3 percent.
The annual rate of core consumer price growth also ticked up to 3.3 percent in January from 3.2 percent in December. Economists had expected the pace of growth to slow to 3.1 percent.
The monthly core consumer price growth reflected a 0.4 percent increase by shelter costs as well as higher prices for motor vehicle insurance, recreation, used cars and trucks, medical care, communication, and airline fares.
Meanwhile, the report said prices for apparel, personal care, and household furnishings and operations were among the few that decreased in January.
At 10 am ET, Federal Reserve Chair Jerome Powell is scheduled to deliver his semiannual monetary policy testimony before the House Financial Services Committee.
The Energy Information Administration is due to release its report on oil inventories in the week ended February 7th at 10:30 am ET.
Crude oil inventories are expected to increase by 2.8 million barrels after surging by 8.7 million barrels in the previous week.
At 12 pm ET, Atlanta Federal Reserve President Raphael Bostic is scheduled speak on the economic outlook in a moderated conversation before the Atlanta chapter of the National Association of Corporate Directors.
The Treasury Department is due to announce the results of this month’s auction of $42 billion worth of ten-year notes at 1 pm ET.
At 5:05 pm ET, Federal Reserve Board Governor Christopher Waller is scheduled to speak on “Stablecoins” before “A Very Stable Conference: Stablecoin Infrastructure for Real World Applications.”