US headline CPI eased from 2.7% yoy to 2.4% in January, slightly below expectations of 2.5% and marking the lowest reading since May.
Core CPI also moderated, slipping from 2.6% to 2.5%, matching forecasts and reaching its lowest level since early 2021. Over the past 12 months, the energy index fell -0.1%, while food prices rose 2.9%.
On a monthly basis, CPI rose 0.2%, while core CPI increased 0.3%. Shelter remained the largest contributor to the monthly gain, rising 0.2%, alongside a 0.2% increase in food prices. These advances were partially offset by a -1.5% decline in energy prices, which helped cap overall inflation momentum.
The data reinforce the view that inflation pressures are gradually easing, though core components — particularly shelter — continue to keep underlying price growth above the Fed’s 2% target.
