Inflation cooled more than expected
Digest more
While the reading was cooler than expected, consumers still saw higher costs for computers, ​appliances​ and hospital care.
The slightly lower number for January reflects smaller price increases for shelter and food, as well as a decrease in energy costs.
Inflation cooled more than expected in January, according to consumer data released Friday by the Bureau of Labor Statistics.
Inflation slowed in January to its tamest pace since May 2025 as the economy seemingly skirts the full effects of President Trump’s tariffs for now – helped by falling gasoline prices. The Consumer Price Index rose 2.
Inflation came in below economists' forecasts and slowed from December's 2.7% annual rate.
A Friday the 13th economic report appeared to deliver some fortunate news: Annual inflation slowed significantly.
Key Takeaways Forecasters expect inflation to have decelerated in January, with core prices rising 2.5% over the year, the lowest since 2021.Tariffs are still pushing up prices, but some costs, including for housing,