U.S. Consumer Inflation Falls to Nearly Five-Year Low
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WASHINGTON — Consumer prices rose 2.4% year-over-year in January, down from 2.7% in December, as gas prices and apartment rent growth cooled, official U.S. data show. Core inflation, excluding food and energy, increased 2.5% year-over-year, the smallest gain since March 2021, after rising 2.6% in December. On a monthly basis, overall CPI rose 0.2% and core CPI rose 0.3% in January. The Federal Reserve’s 2% inflation target provides context for policymakers monitoring labor and housing costs. Used-car prices also eased, contributing to lower core inflation. Based on 6 articles reviewed and supporting research.
Prepared by Christopher Adams and reviewed by editorial team.
Timeline of Events
- Early 2020s: Pandemic disruptions and stimulus contributed to rising consumer prices.
- 2021–2022: Supply constraints and demand recovery pushed CPI higher across multiple categories.
- December: Overall CPI measured 2.7% year-over-year; core CPI 2.6%.
- January: Official report shows overall CPI 2.4% year-over-year and core CPI 2.5%.
- January: Used-car prices fell sharply month-to-month, helping reduce core inflation.
- Articles Published:
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Savers, bondholders and some fixed-income households could benefit modestly if lower inflation persists, while consumers may see slower price growth for fuel, used cars and rents.
Households that already experienced large price increases continue paying about 25% more than five years ago, and low-wage workers remain exposed to affordability pressures despite recent cooling.
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U.S. Consumer Inflation Falls to Nearly Five-Year Low
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