Inflation in the United States showed signs of moderation at the start of 2026. The Consumer Price Index (CPI) rose 2.4% year over year in January, three-tenths of a percentage point below December’s reading and slightly under market expectations, according to data released by the Bureau of Labor Statistics.
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Core inflation, which excludes the more volatile food and energy components, slowed to 2.5% annually, down one-tenth from the previous month and broadly in line with analysts’ forecasts. The report was published two days late due to a partial federal government shutdown earlier in the month.
Although the headline figure came in below the 2.5% projected by economists, it remains above the 2% target used by the Federal Reserve as a benchmark for monetary policy decisions.
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On a monthly basis, the CPI increased 0.2% in January after a 0.3% gain in December. Core prices rose 0.3% month over month, one-tenth higher than the previous reading.
Shelter costs climbed 0.2% in January and continued to be the primary driver of monthly price gains, though the pace slowed compared to December’s 0.4% increase. Food prices rose 0.2%, with grocery prices matching that rate, while food away from home increased 0.1%.
These gains were partially offset by a 1.5% monthly decline in energy prices, largely reflecting a 3.2% drop in gasoline prices. On an annual basis, the energy index fell 0.1%, while food prices increased 2.9%.
