The Consumer Price Index increased 0.5% on a seasonally adjusted basis in January, after rising 0.4% in December, the U.S. Bureau of Labor Statistics reported Wednesday. Over the last 12 months, the all items index increased 3% before seasonal adjustment.

“Inflation in January rose faster than expected, driven by broad increases in services, commodities, and groceries. Core inflation, a strong predictor of future headline prices, remained stuck between 3.2 % and 3.3% for the last seven months, indicating that reaching the target remain difficult,” said America's Credit Unions Senior Economist Dawit Kebede. “This report, combined with a still-solid labor market, supports the case for the Federal Reserve to maintain interest rates.”