Inflation accelerated in January, rising 3% on an annual basis, indicating that the Federal Reserve's push to drive inflation down to a 2% annual rate has stalled out, at least temporarily. The Consumer Price Index was forecast to rise 2.

This week’s forthcoming Consumer Price Index report could show easing year-on-year inflation, increasing the potential for Fed interest rate cuts in May or June 2025.

CPI data will make the Federal Reserve more cautious about inflation risks, with more Fed watchers saying the central bank wouldn’t cut rates at all this year. U.S. headline CPI inflation rose 0.5% in January,