Inflation ran hotter than expected in January, complicating the Fed's rate decision

Inflation ran hotter in January than had been forecast by economists, signaling that higher prices remain sticky and complicating the Federal Reserve's decision about when to begin cutting its benchmark rate. As with inflation last month, higher housing and food prices were the big drivers.

Consumer prices rose 3.1% in January from a year earlier, the government said on Tuesday. Economists had expected January prices to rise at a 2.9% pace from a year ago, according to FactSet. 

Even so, the pace reflected an improvement from December, when inflation rose at an annual rate of 3.4%.