Overview
- Consumer prices rose 0.2% on the month, bringing the annual rate down to 2.4% from 2.7% in December and coming in below expectations.
- Core inflation eased to 2.5% year over year, according to the Bureau of Labor Statistics.
- Housing was the largest contributor in January, food prices ticked higher, and energy fell 1.5%.
- President Donald Trump publicly celebrated the softer reading, calling inflation back on track.
- Economists warn tariffs could lift prices later in 2026, and markets see the Fed holding rates in March with roughly an 83% chance of a June cut.