Inflation pressures appear to be building in the U.S. economy, a prospect that is heightening anxiety about potentially higher borrowing rates that could slow economic growth.
The latest source of concern was a report Wednesday that showed a key measure of inflation rising in January by the sharpest rate in a year. The increase was led by higher prices for clothing, housing and auto insurance.
Some economists cautioned, though, that some of those price increases are tied to temporary factors and might not signify sustained inflation.
At the same time, the government reported that Americans cut back on their retail spending in January, leading some analysts to...