A money changer counts US dollar banknotes. Photo: BAY ISMOYO / AFP via Getty Images

U.S. consumer price inflation climbed more than expected in January, which will likely heighten concerns that the economy is overheating, according to a Labor Department report released Wednesday.

Why it matters: The report has taken on higher significance after strong wage growth roiled the stock market, resulting in one of the most volatile trading months in years. The numbers may also add to investor fears that the Federal Reserve will raise interest rates at a faster pace than anticipated.

By the numbers: The consumer price index, which excludes volatile food and energy prices, were 1.8% higher from a year earlier, higher than the forecasted 1.7% estimate.

  • The CPI rose 0.5% from the previous month, higher than the estimated 0.3% increase.
  • The energy index increased 0.3%, also above the projected 0.2%.
  • Apparel costs jumped more than they have in nearly 30 years, according to Bloomberg, adding to signs of rising inflation.

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