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Annual consumer inflation in the U.S. slowed to 2.4% in January, easing from 2.7% in December 2025 and coming in below market expectations of 2.5%, according to official data released Friday.
Figures from the Bureau of Labor Statistics showed that the consumer price index (CPI) rose 0.2% month-on-month in January, down from December’s 0.3% increase and also below expectations.
The CPI figures had stood at 2.7% in both December and November, and at 3% in September.
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Energy prices helped drive the slowdown, with overall energy costs falling 1.5% compared to December. On a yearly basis, energy prices declined 0.1%.
Food prices, however, remained elevated. They increased 0.2% month-on-month in January and were up 2.9% compared to a year earlier. Shelter prices also rose 0.2% from December.
Core inflation, which excludes volatile food and energy prices, rose 2.5% over the past 12 months, slightly below December’s level and in line with expectations.
Affordability worries have come to the fore in recent months as price increases in areas such as food have proven persistent, while President Donald Trump’s tariffs have flowed through the world’s largest economy.
Firms have reported higher business costs, although many sought to soften the impact by building up inventories ahead of planned tariff hikes and refrained from fully passing additional costs on to consumers.
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