Inflation eased more than expected to 2.4 percent pace last month.

A measure of inflation may have fallen to a five-year low in January as rental costs have cooled, a sign that some prices are moderating while Americans continue to grapple with a big rise in overall prices in the past five years.

Core inflation, which excludes the more volatile costs of food and energy and is considered a better indicator of underlying price trends, decelerated last month. Core CPI inflation was 2.5% year over year in January.

US inflation slightly accelerated at the start of the year, driven by rising services costs. Full details here.

The inflation reading, the lowest since May 2025, shows grocery, gas and rent prices are cooling.

Inflation in the United States eased at the start of 2026, providing a reprieve to the Federal Reserve as it contends with yet another year of consumer prices rising faster than the central bank’s target. Here is what the latest Consumer Price Index showed on Friday.

The core CPI inflation rate fell to its lowest level since early 2021.