Inflation in the US, as measured by the Consumer Price Index (CPI), rose to 7.5% on a yearly basis in January from 7% in December, the US Bureau of Labor Statistics reported on Thursday. This print surpassed the market expectation of 7.3%. On a monthly basis, CPI was up 0.6% in January.

Further details of the publication revealed that the Core CPI, which excludes volatile food and energy prices, climbed to 6% from 5.5% in December.

Market reaction

With the initial market reaction, the greenback started to gather strength against its major rivals and the US Dollar Index was last seen rising 0.25% on the day at 95.78.

Meanwhile, the benchmark 10-year US Treasury bond yield gained traction and reached its highest level since August 2019 at 1.98%.