U.S. Inflation Slows as Core Pressures Still Persist
Tap title to read story
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.
More context
Timeline
- 1. March 2025: TD Securities flags persistent core inflation and service-sector strength.
- 2. January 2026: U.S. Bureau of Labor Statistics collects CPI data for the month.
- 3. Early February 2026: Media outlets report January CPI at 2.4% year-on-year, core at 2.5%.
- 4. Analysts interpret the results as cooling headline inflation but continuing service and shelter pressures.
- 5. Markets and policymakers assess implications for Treasury yields and potential future Fed rate moves.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
