The Labor Department's inflation report released on Friday showed the US consumer price index rising 1.4% on the headline figure when compared with last year. Expectations were for an increase of 1.3%. The core CPI was up 2.20% compared to a year ago in January, marking the biggest increase since June 2012. Energy prices continued to remain a drag on inflation and on a monthly basis, inflation was largely flat. The surge in inflation data in January has rekindled forecasts for the Fed to keep up its hawkish stance, with the probability for a December rate hike rising to 43% from the previous 32%. The US dollar edged higher after the inflation data was released but soon gave back its gains towards the market’s closing hours. USDJPY remained weak, posting a second day of declines at 112.56. The pair opened today at 112.588 and is currently attempting to push higher, trading at 112.93 at the time of writing.