In what is a concerning development for Americans, US inflation has officially risen to 3% for January 2025. Indeed, the data from the Bureau of Labor Statistics Consumer Price Index (CPI) has arrived above what many analysts had expected. Moreover, it is up slightly from December’s 2.9% inflation rate.

The monthly figures are important as the Federal Reserve continues to develop its plan forward with regard to interest rate cuts. Just this week, Fed Chair Jerome Powell discussed the next potential cuts. Specifically, he noted that the country didn’t “need to be in a hurry.” Conversely, January’s inflation is the highest record mark since June 2024.

BREAKING: 🇺🇸 US inflation rises to 3%, higher than expectations.

— Watcher.Guru (@WatcherGuru) February 12, 2025

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US Inflation Jumps Again to 3% to Kick Off 2025

Over the last several weeks, the US economy has been confronted with what could be a concerning start to the incoming Trump administration. He has enacted several tariffs on a host of countries, extending beyond just the BRICS nations. With a global trade war brewing, all eyes are on the state of inflation to start the year.

The data is in, showing that US inflation jumped to 3% in January 2025. The increase continues a trend and has seen the cost of living for Americans reach its highest level since June of last year. Moreover, the figure exceeded what many had projected.

Also Read: US Inflation Rises to 2.9% in December 2024

According to a CNN report, experts had projected the data to keep an annual rate of 2.9%, mirroring December. However, it has instead increased from last month’s figure and is further increasing above the Federal Reserve’s 2% target.

There is still reason to be optimistic. Indeed, inflation has fallen notably over the last several years. Since reaching a 40-year high in 2022, prices have gone down to controllable levels. Yet, it further reinforces the obstacles that US President Donald Trump will have to navigate in his return to the Oval Office.