WASHINGTON — The U.S. Labor Department reported Friday that consumer prices rose 2.4% in January from a year earlier, down from 2.7% in December, while core CPI excluding food and energy rose 2.5%. Monthly inflation showed modest gains, with headline up 0.2% and core up 0.3%, driven by lower gasoline and used-car costs and slower rental growth, while shelter and some service categories remained elevated this week nationwide. Analysts and TD Securities warned persistent service-sector inflation could influence Treasury yields and Federal Reserve decisions on future rate changes. President Trump welcomed the reading. Based on 6 articles reviewed and supporting research.
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Bond holders and short-term fixed-income investors benefited as softer headline inflation reduced near-term expectations for rate increases and opened prospects for policy easing that could push yields lower.
Lower-income households, renters and consumers on fixed incomes suffered as shelter, food and many service-sector prices remained elevated despite the slower headline inflation reading.
Inflation slowed in January, but some prices are still biting - East Idaho News
East Idaho NewsU.S. Inflation Slows as Core Pressures Still Persist
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