#USCoreCPIHitsFour-YearLow

#CoreCPIFourYearLow
Observed easing in inflationary pressures in the US economy is drawing attention with the latest data. According to the US Bureau of Labor Statistics' January 2026 Consumer Price Index (CPI) report, core CPI — excluding food and energy — fell to an annual rate of 2.5%. This marks the lowest level since March 2021, indicating a steady cooling in underlying price pressures.
Headline CPI rose 2.4% year-over-year, down from 2.7% in December 2025, signaling an eight-month low and coming in slightly below expectations.
Shelter cost moderation played a key role in this change. The shelter index increased 3% annually (down from 3.2% the previous month). Price growth in recreation as well as household furnishings and operations categories also remained limited.
Monthly core CPI rose 0.3%, in line with expectations but higher than December's softer pace. Some resilience persists in certain service-sector costs.
Markets reacted to the data, with limited movements observed in equity indices and bond yields.
In summary, the four-year low in core CPI indicates that the post-pandemic inflation period has largely subsided. Upcoming monthly readings will test the sustainability of this trend.