U.S. Inflation Eased at Start of the Year
The New York Times • • general
Key Points:
- Inflation in the U.S. eased to 2.4% year-over-year in January 2026, down from 2.7% previously, providing some relief to the Federal Reserve.
- Core inflation, which excludes food and energy prices, decreased slightly to 2.5% from 2.6% year-over-year.
- The impact of President Trump’s tariffs on consumer prices has been less severe than initially feared, but uncertainty remains about their full effect on inflation.
- The lower-than-expected inflation figures ease concerns about a rapid re-acceleration, though persistent core inflation suggests ongoing price pressures.
- Policymakers remain cautious about cutting interest rates too quickly due to the stickiness of core inflation.
