Inflation Rate in the U.S. Drops to 2.4% in January, Lowest in Eight Months

The latest Consumer Price Index report revealed that the annual inflation rate in the U.S. fell to 2.4% in January, the lowest level in eight months, down from 2.7% in December. While this decline is encouraging, some inflationary pressures persist and are even accelerating, particularly in sectors sensitive to tariffs. Monthly prices saw a modest increase of 0.2%, primarily driven by lower gasoline prices and a slowdown in housing costs. Economists had expected a higher monthly increase of 0.3%. The core inflation rate, which excludes food and energy prices, also decreased to 2.5%, the lowest since March 2021, although it showed a slight monthly acceleration to 0.3%. Experts caution that while the overall moderation in inflation is positive, it is premature to declare a complete victory over inflation.

Key Details: • Annual inflation rate decreased to 2.4% in January 2026. • Monthly price increase was 0.2%, lower than the expected 0.3%. • Core inflation rate is now at 2.5%, the lowest since March 2021. • Inflation pressures in tariff-sensitive goods are still rising.