US inflation unexpectedly increased to 3.2 per cent last month, highlighting the challenge faced by the Federal Reserve in the “last mile” of its fight against rising prices.
Economists polled by Bloomberg had expected annual consumer price inflation to remain unchanged from January’s rate of 3.1 per cent.
But Tuesday’s rise, largely stoked by services such as motor insurance and health, triggered warnings that the Fed may have to wait longer than previously expected before cutting interest rates from their current 23-year high.
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