New Delhi, Feb. 14 -- Market expectations of multiple rate cuts from the US Federal Reserve this year have weakened after US consumer prices rose more than expected in January, increasing the likelihood that the central bank will keep interest rates higher for longer.

The headline consumer price index (CPI) rose by 0.5% in January, while the core index increased by 0.4%, both exceeding expectations of a 0.3% rise. This pushed the annual headline CPI increase to 3.0%, above the anticipated 2.9%, while core prices rose at an annual pace of 3.3%, surpassing the expected 3.1% rise.

Although inflation has declined sharply from the 40-year peak reached in mid-2022, the Fed's 2% target remains elusive. In 2024, the US Federal Reserve implement...