Consumer prices rise at faster pace in January

• Core CPI, which excludes food and fuel prices, rose by 0.4% in January, matching the same pace in December. Over the last 12 months through January, this index rose 5.6%. In December, that figure was 5.7%.

Why it matters: It was the highest reading since October — the latest sign that squashing inflation might not be a consistent, downward path.

That was acknowledged by Federal Reserve chair Jerome Powell last week, who warned the process of slowing price gains would take some time and wouldn’t be a smooth process.

• The Fed, for its part, raised interest rates for the eighth consecutive time earlier this month as part of an aggressive campaign to cool the economy and, in turn, inflation.
• But a string of hotter inflation readings could suggest reinvigorating and more persistent inflation pressures. That could force policymakers to raise rates to a higher level than currently anticipated.

Details: Soaring prices for goods were once a key driver of inflation. But healing supply chains and slower demand have cooled those price spikes in recent months or, in some cases, caused prices to fall outright.

• Used car and truck prices, for instance, fell 1.9% in January — roughly the same pace as in December.
• The Fed is now focused on the other side of the economy: the services sector, where inflation can be harder to tame.

Editor's note: This is a developing story. Please check back for updates.