U.S. inflation accelerated last month as the cost of groceries, gasoline and rents rose, a disappointment for families and businesses struggling with higher costs and likely underscoring the Federal Reserve's resolve to delay further interest rate cuts.

The arguably more important measure of core inflation, which excludes price changes in the often volatile food and energy categories, increased 3.3% year-over-year in January, higher than forecasts of 3.1%. And core prices rose 0.4% from December to January, compared to estimates of 0.3%.

The index that tracks food was up 4 percent, led in part by a 6.6 percent increase in the category that includes meats, poultry, fish and eggs. Egg prices across the country are skyrocketing because of a bird flu outbreak. Nationally, egg prices jumped 15 percent from December to January.

U.S. consumer prices in January increased by the most since August 2023 with Americans facing higher costs for housing and food, reinforcing the Federal Reserve's message that it was in no rush to resume cutting interest rates amid growing uncertainty over the economy.

Inflation rose to 3% in January, its highest rate for six months, and above the 2.9% expected by economists. Price rises for food and energy both helped drive up the overall rate of price increases. The rise comes weeks after the US central bank decided to hold interest rates,

U.S. inflation accelerated last month as the cost of groceries, gas, and used cars rose, a trend that will likely underscore the Federal Reserve’s resolve to delay any further interest rate cuts.