Inflation cools again as January CPI hits 2.4%, Core CPI falls to lowest level since 2021. The odds of a Fed rate cut jumped





Consumer Price Index Summary
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CONSUMER PRICE INDEX – JANUARY 2026

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent on a seasonally adjusted basis in
January, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.4
percent before seasonal adjustment.

The index for shelter rose 0.2 percent in January and was the largest factor in the all items monthly increase. The
food index increased 0.2 percent over the month as did the food at home index, while the food away from home index rose
0.1 percent. These increases were partially offset by the index for energy, which fell 1.5 percent in January.

The index for all items less food and energy rose 0.3 percent in January. Indexes that increased over the month include
airline fares, personal care, recreation, medical care, and communication. The indexes for used cars and trucks,
household furnishings and operations, and motor vehicle insurance were among the major indexes that decreased in
January.

The all items index rose 2.4 percent for the 12 months ending January, after rising 2.7 percent for the 12 months
ending December. The all items less food and energy index rose 2.5 percent over the last 12 months. The energy index
decreased 0.1 percent for the 12 months ending January. The food index increased 2.9 percent over the last year.

https://www.bls.gov/news.release/cpi.nr0.htm

Per Grok: The odds of a Fed rate cut have jumped following the January CPI data. Inflation at 2.4% (below the 2.5% forecast) and core at 2.5% signal cooling prices, boosting chances for cuts as early as March—markets had priced in low odds before, but this eases pressure on the Fed.