Consumer prices in January up more than expected

Washington

US consumer prices rose more than expected in January, with a measure of underlying inflation posting its biggest gain in a year, strengthening expectations that price pressures will accelerate this year and prompt a faster pace of interest rate increases from the Federal Reserve.

US stocks fell early Wednesday following the data report as fears of faster Federal Reserve interest rate hikes threatened to end a three-day streak of stock gains. Inflation concerns had sparked a sell-off on Wall Street and boosted benchmark US Treasury yields to a four-year high.

There are fears that inflation, which is seen as being driven by a tightening labour market and increased government spending, could force …