The annual inflation rate in the United States slowed to 2.4% in January 2026, its lowest level since May, compared with 2.7% in each of the previous two months, and lower than expectations of 2.5%.
This slowdown primarily reflects base effects, with higher readings from last year being removed from the annual calculation. On a monthly basis, the Consumer Price Index (CPI) rose by 0.2%, compared to 0.3% in December and below expectations of 0.3%.
The housing cost index rose by 0.2%, making it the biggest contributor to the monthly increase in the overall price index.
Regarding core inflation, the annual core inflation rate fell to 2.5%, its lowest level since March 2021, compared to 2.6% in the previous month, in line with market expectations. On a monthly basis, core inflation rose by 0.3%, slightly higher than the 0.2% increase recorded in December.