US Inflation Comes in Relatively Tame, Defying Fears of Jump (2)

US inflation was fairly mild at the start of the year, defying concerns for a bigger jump and boosting expectations that the Federal Reserve will deliver more interest-rate cuts.

The consumer price index rose 0.2% in January, the smallest gain since July and restrained by lower energy costs, according to Bureau of Labor Statistics data out Friday. An underlying metric known as the core CPI, which excludes food and energy, advanced as expected from a month earlier.

January inflation readings have been strong in recent years, often beating expectations as companies tend to raise their prices ...