The increase in U.S. inflation last month exceeded expectations across the board, supporting the Federal Reserve’s cautious attitude towards rate cuts. Data released by the U.S. Bureau of Labor Statistics on Wednesday showed that the core CPI, which excludes food and energy costs, accelerated to 0.4% month-on-month in January, the largest increase since March 2024, exceeding expectations of 0.3% and the previous value of 0.2%; the year-on-year growth rate accelerated to 3.3%, higher than the expected 3.1% and the previous value of 3.2%. The overall CPI accelerated to 0.5% month-on-month, the largest increase since June 2024, higher than the expected 0.3% and the previous value of 0.4%, and the year-on-year growth rate returned to the “three-digit” at 3%, higher than the previous value and market expectations of 2.9%.