The US consumer prices for January exceeded expectations, indicating ongoing inflation and diminishing the possibility of imminent interest rate cuts.

The Consumer Price Index rose 0.5% last month — an increase from December’s 0.4% growth, the Bureau of Labor Statistics said on Wednesday.

In the 12 months through January, the CPI grew 3%, up from 2.9% in December.

Economists polled by FactSet had expected a 0.3% monthly increase and 2.9% year-over-year growth.

Core CPI — which excludes volatile food and energy prices — grew 0.4% in January from the month before, also rising more than expected.

The core figure came in at 3.3% year-over-year, above FactSet expectations of 3.1%.

Economists anticipated that the CPI report released on Wednesday would confirm minimal inflation slowdown. However, the revealed uptick in prices is expected to dissuade the Federal Reserve from reducing interest rates in the near future.

The inflation report shows a growing distance from the Fed’s 2% goal, and the case could even be made in favor of rate hikes.

Since the pandemic, January and February reports have typically shown hotter inflation figures.

At the start of the year, producers typically increase prices, while recent minimum wage adjustments in 21 states could also be influencing the rise in prices.

Meanwhile, a rampant avian flu has devastated flocks across the US and sent prices soaring.

The national retail price for caged large white eggs jumped about 25% in January from the month before, according to the US Agriculture Department.