Price pressures in the U.S. eased at the start of 2026, with the annual rate of consumer-price inflation slowing from 2.7% in December to 2.4% in January.
The reading was below economist expectations of 2.5% and marked the lowest inflation print since May 2025.
On a monthly basis, headline CPI rose 0.2%, slightly below both the prior reading and consensus estimates of 0.3%.
Core inflation — which excludes food and energy — also cooled, edging down from 2.6% year over year in December to 2.5% in January, as expected. This marked the lowest core inflation reading since March 2021.
Month over month, core CPI increased 0.3%, meeting forecasts and ticking up slightly from December's 0.2% gain.
Where Inflation Is Rising Or Falling
Shelter costs remained a key driver. The index for shelter rose 0.2% in January and was the largest contributor to the overall monthly increase in the all-items index, underscoring the ongoing stickiness in housing-related expenses.
Energy remained a drag, with the subindex for energy items dropping 1.5% on the month. Fuel oil inflation dropped 5.7% monthly, yet utility gas-piped service surged 1% with the latter likely affected by the January’s cold snap.
Inflation gains were also visible in airline fares – which recorded the highest monthly increase at 6.5% – personal care, recreation, medical care and communication.
Offsetting some of those increases were declines in used cars and trucks, household furnishings and operations, and motor vehicle insurance.
Market Reactions
U.S. equity indices inched higher in premarket trading in New York, with futures on the S&P 500 reversing earlier losses as investors welcomed the lower-than-expected inflation data.
In commodities, precious metals rallied sharply.
Gold futures – as tracked by the SPDR Gold Shares (NYSE:GLD) – climbed 1.3% to $4,985 per ounce, while silver futures surged nearly 5% to $78.72 per ounce.
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