In January, inflation was higher than anticipated, raising concerns for the Federal Reserve. Although overall prices decreased slightly from a year ago, the report signaled potential challenges for the Fed. The Consumer Price Index rose by 3.1 percent from a year earlier, surpassing economists' 2.9 percent forecast. Core prices, excluding food and fuel, remained steady on an annual basis, climbing 3.9 percent from a year earlier and surging the most in eight months on a monthly basis. This unexpected inflation has led investors to reduce the likelihood of a Fed rate cut, impacting stock markets. The Fed has raised interest rates to around 5.3 percent to tackle inflation and is now considering when and by how much to lower borrowing costs.