"Inflation Surprises: Dow Plunges as Rising Rents Drive Prices Higher"

The US consumer price index (CPI) rose 0.3% in January, driven by a surge in rental housing costs, with shelter accounting for over two-thirds of the increase. Despite the higher inflation, the Federal Reserve is still expected to start cutting interest rates in the first half of 2024. The CPI increased 3.1% year-on-year, while core CPI rose 3.9%. Economists believe that not all inflation drivers will factor into the Fed's preferred inflation measure, and expect inflation to ease in the coming months. Policymakers are cautious about cutting rates and want convincing evidence of sustained slow inflation before taking action.