Inflation came in below economists' forecasts and slowed from December's 2.7% annual rate.

M/M vs. +0.3% consensus and +0.3% prior, according to data released by the Bureau of Labor Statistics on Friday.

The slightly lower number for January reflects smaller price increases for shelter and food, as well as a decrease in energy costs.

Goldman’s new 3.05% PCE forecast is a brutal reality check for the Fed—and it could stall rate cuts for months.

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

The headline CPI rose 0.2% on a monthly basis, less than economists had forecast, while the core – which excludes food and energy – was in line with estimates, at 0.3%. A 1.5%

CPI report shows headline/core inflation cooling and PCE likely undershooting Fed forecasts—boosting rate-cut odds.

Among those respondents worried about the economy, inflation emerged as the dominant issue, cited by 47% as their top concern. The cost of housing ranks second at 29% while retirement savings concerns, 11%, and job loss, 4%, lagged well behind.

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

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.

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