Key US Inflation Measure Surges At Fastest Rate Since June

WASHINGTON (AP) – The Federal Reserve’s preferred inflation gauge rose last month at its fastest pace since June,  an alarming sign that price pressures remain entrenched in the U.S. economy and could lead the Fed to keep raising interest rates well into this year.

Consumer prices rose 0.6% from December to January, up sharply from a 0.2% increase from November to December.

On a year-over-year basis, prices rose 5.4%, up from a 5.3% annual increase in December.

Excluding volatile food and energy prices, so-called core inflation rose 0.6% from December, up from a 0.4% rise the previous month.