The Consumer Price Index rose 0.5%, while a measure that strips out energy and food rose 0.4%, the Labor Department said on Wednesday. Why it matters: It's a warning to the White House and the Fed about inflation's potential staying power across the economy.

Inflation heated up more than expected in January, as prices for groceries, housing and energy all rose for Americans in early 2025, complicating President Donald Trump’s agenda.

The producer price index for final demand climbed 0.4% from a month earlier, and that after an upwardly revised 0.5% increase in December, the Bureau of Labor Statistics said Thursday. The data on wholesale prices comes just a day after a consumer price index report showed underlying inflation at its highest in more than a year.