A woman and child shop at Walmart to Go convenience store in Bentonville

US consumer prices are on the rise, spurring fears about higher interest rates

0.5%

US consumer prices rose more than analysts expected in January, driven by increased apparel costs and other factors, sending the volatile stock market into a sharp dive.

Published   |  Photo by Reuters/Rick Wilking
A woman and child shop at Walmart to Go convenience store in Bentonville
0.5%

The consumer price index rose 0.5% from December. The year-over-year CPI rose by 2.1%, versus expectations of 1.9%.

A woman and child shop at Walmart to Go convenience store in Bentonville
0.5%

Apparel costs, which make up about 3% of the basket of hypothetical goods used to calculate the CPI, rose by 1.7%—the biggest jump in nearly 30 years. Women’s apparel costs were up 3.4%, an all-time record.

A woman and child shop at Walmart to Go convenience store in Bentonville
0.5%

Stocks declined sharply on fears that higher inflation could spur the US Federal Reserve to raise interest rates. The S&P 500 was down about 0.5% at the open.

A woman and child shop at Walmart to Go convenience store in Bentonville
0.5%

Central banks in the US and Europe have labored for years to achieve 2% annual inflation—a benchmark that is calculated to be healthy for an economy. But now that it’s happening, markets are freaking out.

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