Inflation Ran Hot in January. The Hidden Reasons Rate Hikes Aren’t Working—Yet

Inflation data published Friday show that consumer price growth reaccelerated in January, marking the latest sign that the U.S. economy is defying the Federal Reserve’s attempts to cool demand.

The data sent stocks tumbling and sparked calls for a hefty half-point interest-rate hike when the Fed meets again next month. The latest inflation report also fueled further questions about why the economy has been able to remain so hot nearly a year into the central bank’s most aggressive monetary-policy tightening campaign in decades, defying widespread expectations.