US consumer prices jumped 0.7% in January due to a steep rise in energy costs, while the 'core' index of inflation, excluding food and energy, rose 0.2%.
The headline reading for the consumer price index (CPI) was stronger than the 0.5% rise expected on Wall Street. But the core rate, seen by many experts as a more reliable indicator of trends, was in line with forecasts.
The annual rate of inflation in January was 4%, with a core rate of 2.1%.
The figures should keep the Federal Reserve on course to raise its key interest rate to 4.75% in late March. The Fed has said it believes it is 'close' to the end of its rate hikes but remains concerned that the economy will overshoot and that inflationary pressures could rise.
After two months of declines, energy prices rose 5% in January. Petrol prices increased 6.4% and electricity rose by a record 5.5%.
