Key US inflation measure surges at fastest rate since June

On a year-over-year basis, prices rose 5.4%, up from a 5.3% annual increase in December. Excluding volatile food and energy prices, so-called core inflation rose 0.6% from December, up from a 0.4% rise the previous month. The report also showed that consumer spending rose 1.8% last month from December after falling the previous month. Since March of last year, the Fed has attacked inflation by raising its key interest rate eight times. The consumer price index showed a worrisome rise from December to January: It jumped 0.5% — five times the November-to-December increase.