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US inflation rose 3.1% in January, a hotter-than-expected increase that further stokes doubts as to whether the Federal Reserve will begin cutting interest rates this spring.

Last month’s Consumer Price Index — which tracks changes in the costs of everyday goods and services — came in higher than the 2.9% figure economists had expected, according to FacfSet.

Core CPI — a number that excludes volatile food and energy prices — increased 0.4% in January, to 3.9%, after rising 0.3% in December. The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists at FactSet expected.

Dow futures were poised to drop early Tuesday as traders began to unwind bets that the Fed will begin easing rates sooner rather than later.

The latest inflation figure marks a cooldown from December’s stiffer-than-expected 3.4% gain, which dampened hopes on Wall Street that the first of three highly-anticipated interest rate cuts this year could come as soon as March.

“The question is whether or not May 1 remains a possibility if the next series of inflation related data do not edge lower than expected,” said LPL Financial’s chief global strategist, Quincy Krosby.

“This could easily be a one off. But for all those people saying rates are too high, he’s got to cut now,” Chris Zaccarelli, chief investment officer of Independent Advisor Alliance, said of Fed Chair Jerome Powell. “What are we waiting for? This is why. This is exactly what Powell was worried about.”

The Bureau of Labor Statistics attributed the CPI’s increase to the shelter index, which rose 0.6% on a monthly basis and contributed to two-thirds of the monthly all-items increase. The food index increased 0.4% in January, more than the 0.2% it advanced in December.

The gas index, meanwhile, experienced a handsome 3.3% drop, offsetting increases in the electricity and natural gas indexes, the federal agency said. As of Tuesday, the average price for a gallon of gas in the US is $3.23, according to AAA data.

The Bureau of Labor Statistics’ latest CPI report underscores that cash-strapped Americans, who are still dealing with retail prices far above where they were before the pandemic.

Hopes for rate cuts also took a hit with the January jobs report showing the labor market is booming, with US employers adding a staggering 353,000 jobs last month.

The figure blew past the 185,000 jobs economists expected, as the unemployment rate remained steady at 3.7% for the third month in a row.

Januarys jobs report was the first major piece of economic data since the Federal Reserves latest policy meeting, when central bankersunanimously decided to keep interest rates at their current 22-year high, between 5.25% and 5.5%.

Considering the jobs report and the CPI, the Fed still “doesnt have a coherent set of criteria for cutting, so for all we know this resets the clock,” according to Subadra Rajappa, Societe Generale’s Head of US Rates Strategy.

“If cutting is a confidence game, we dont know when enough progress is enough or whether mild setbacks undermine their confidence.”

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Meanwhile, President Joe Biden has addressed the issue of “shrinkflation” — when businesses cut product sizes but keep prices the same — in a video posted on X ahead of Super Bowl LVIII.

Biden called the practice “a rip-off.”

Im calling on companies to put a stop to this. Lets make sure businesses do the right thing now, he said, though he didn’t offer a solution or policy to address the practice.

Senator Bob Casey in December released a report that showed the impact of smaller product sizes on everything from toilet paper to Oreos.

The report noted that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.

It said the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.

Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.

Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.

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Canes bench G Andersen; Kochetkov to start G3

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Canes bench G Andersen; Kochetkov to start G3

FORT LAUDERDALE, Fla. — The Carolina Hurricanes are benching starter Frederik Andersen for Game 3 of the Eastern Conference finals.

Backup Pyotr Kochetkov, who replaced Andersen for the third period of their 5-0 loss to the Florida Panthers in Thursday’s Game 2, will get the start. Florida holds a 2-0 series lead over Carolina with Game 3 scheduled for Saturday night in Sunrise.

“Just change the vibe a little bit. I don’t blame Freddie for any of the goals that went in. Obviously, save percentage isn’t great, if you look at that. We do need some saves,” coach Rod Brind’Amour said.

Before Game 1 against Florida, Andersen had allowed only 12 goals in nine playoff games for a .937 save percentage and a 1.36 goals-against average. But in two games against Florida, Andersen has given up nine goals on 36 shots, a .750 save percentage and a 5.54 GAA.

Defenseman Jaccob Slavin had nothing but praise for Andersen on the morning of Game 3, minutes before Brind’Amour announced the goalie change.

“He’s a stone wall back there. He has been all year, He’s a calm presence, and he’s not going to go out outside of his game to try to do anything crazy. So that gives a huge confidence,” Slavin said.

Kochetkov gave up one goal on five shots faced in Game 2. He saw action in the Hurricanes’ first-round win over the New Jersey Devils after Andersen was injured in a collision with Devils forward Timo Meier, giving up five goals on 50 shots in two Carolina victories.

Overall, Kochetkov has appeared in nine career playoff games with a save percentage of .871 and a 3.52 GAA.

Kochetkov saw the majority of the starts in the regular season for the Hurricanes, going 27-16-3 in 47 starts with a .898 save percentage and a 2.60 GAA.

The change comes as the Hurricanes desperately try to get back into a series in which the Panthers have outscored them 10-2. But there are other lineup considerations for Carolina. Brind’Amour said defensemen Jalen Chatfield and Sean Walker are both game-time decisions. Chatfield has yet to appear in the conference finals with an undisclosed injury. Walker was shaken up in Game 2 on a hit from Florida forward A.J. Greer.

Center Jesperi Kotkaniemi, who was a healthy scratch in Game 2, is expected back in the Hurricanes’ lineup.

Puck drop for Game 3 of the East finals is 8 p.m. ET.

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Panthers’ Reinhart out for Game 3 vs. Hurricanes

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Panthers' Reinhart out for Game 3 vs. Hurricanes

FORT LAUDERDALE, Fla. — Florida Panthers forward Sam Reinhart will miss Game 3 of the Eastern Conference finals with a lower body injury.

The Panthers lead the Carolina Hurricanes 2-0, with the action shifting to Sunrise on Saturday at 8 p.m. ET.

Reinhart was Florida’s leading scorer in the regular season with 81 points in 79 games, including a team-high 39 goals. He is a finalist for the Selke Trophy, awarded to the best defensive forward in the NHL. Reinhart scored 57 goals for the Panthers in 2023-24 to earn an eight-year, $69 million contract extension.

He left the Panthers’ 5-0 win in Game 2 on Thursday after a first-period hit by Hurricanes center Sebastian Aho as Reinhart carried the puck into the offensive zone. Aho appeared to make contact with Reinhart’s left knee. Reinhart’s last shift ended with 2:08 left in the first period.

Reinhart underwent testing Friday and was ruled out by coach Paul Maurice on Saturday. Maurice listed him as day-to-day after the Panthers’ morning skate.

The 29-year-old has 11 points in 14 playoff games, skating on the team’s top line with captain Aleksander Barkov and Evan Rodrigues. Reinhart was second on the Panthers with 10 goals during their Stanley Cup championship run in 2024.

Maurice said Reinhart is “a significant player” out of the lineup, one who contributes to the power play and penalty kill.

Forward Jesper Boqvist will draw into Reinhart’s spot alongside Barkov. The 26-year-old has one goal and one assist in nine playoff games this season but has averaged just 8:52 in ice time.

Florida defenseman Aaron Ekblad said the Panthers have plenty of experience picking up the slack for players who are out of their lineup. Florida had only 12 players who played at least 76 games in the regular season.

“Not necessarily losing Rhino, but up and down the line of losing guys. It’s never easy, but it’s a team effort and has always been there for us. Not replace him, because he’s irreplaceable, but do our best,” Ekblad said.

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U.S. routs Sweden to reach hockey worlds final

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U.S. routs Sweden to reach hockey worlds final

STOCKHOLM — The United States beat Sweden 6-2 to advance to the final of the ice hockey world championship Saturday.

In Sunday’s final, the U.S. will play either Switzerland or Denmark, who meet in the other semifinal later Saturday.

The U.S. jumped to a 2-0 lead with a dominant display in the opening period, outshooting the Swedes 13-3.

Brady Skjei put the Americans ahead 6:52 into the game with a shot from the blue line that went through heavy traffic in front of goaltender Jacob Markstrom.

Cutter Gauthier doubled the advantage with 2:47 remaining, picking up the puck after a shot by Shane Pinto was blocked and directing it into the net between Markstrom’s pads.

Gauthier was born in Skelleftea, Sweden, in 2004 when his father, a goaltender, played for a local team.

Conor Garland added a third with 8:53 to go in the second by knocking in a rebound. Mikey Eyssimont made it 4-0 on a 4-on-2 rush from the right circle.

Samuel Ersson replaced Markstrom in the Swedish net at the start of the final period.

William Nylander scored the first for Sweden 6:32 into the third period, and Elias Lindholm scored another 41 seconds later to give Sweden some hope at 4-2.

But defenseman Jackson LaCombe beat Ersson for the fifth U.S. goal with 8:51 to go, and Shane Pinto finished it off into an empty net to complete a three-point game after assisting on the opening two goals.

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