Inflation rose unexpectedly in January, with the Consumer Price Index rising 3% over the last 12 months, up from 2.9% in December. Forecasters had expected inflation to slow down, but prices for food, gas, and housing pushed the inflation rate out of the 2% range for the first time since May.

America’s inflation headache isn’t going away soon, as a report on wholesale prices released Thursday showed them rising in January by 0.4%, more than expected. For the year, the producer price index increased by 3.

U.S. wholesale prices came in hotter than expected last month at a time when progress against inflation appears to have stalled, undercutting expectations for lower interest rates this year