US inflation unexpectedly increases

Source: BBC News

US inflation increased by more than expected last month, as higher egg and energy prices helped to push up the cost of living for Americans.

Inflation rose to 3% in January, its highest rate for six months, and above the 2.9% expected by economists.

The rise comes weeks after the US central bank decided to hold interest rates, saying there was significant uncertainty about where the economy might be headed.

It poses a challenge to US President Donald Trump, who made tackling inflation a centrepiece of his election campaign last year, but has put forward policies, such as higher tariffs on imports, that economists say risk pushing up prices.