January US Consumer Prices Rise Less Than Expected, Year-Over-Year Rates Slow

08:41 AM EST, 02/13/2026 (MT Newswires) -- The US seasonally adjusted consumer price index, a measure of inflation, rose by 0.2% in January, below expectations for a 0.3% increase and following a 0.3% gain in December, according to data released Wednesday by the Bureau of Labor Statistics.

Core CPI, which excludes food and energy prices, rose by 0.3%, in line with the consensus estimate for a 0.3% increase. Core CPI rose by 0.2% in December.

Annual revisions were included with the data.

Food prices increased by 0.2% after a 0.7% gain in December, while energy prices fell by 1.5% after a 0.3% gain. Gasoline prices were down 3.2%

The subcomponents of the index were mixed. Owners' equivalent rents rose by 0.2%, as did regular rents. New vehicle prices rose by 0.1% but used vehicle prices fell by 1.8%. Medical care services rose by 0.3% and apparel prices increased by 0.3%.

CPI excluding food, energy and shelter rose by 0.4% after a 0.1% gain in the previous month.

The year-over-year rates for overall and core CPI slowed to 2.4% and 2.5%, respectively, from 2.7% and 2.6% in the previous month.

The monthly consumer price index, or CPI, reported by the Bureau of Labor Statistics, measures the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing.

The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Federal Reserve as a sign of underlying inflation pressures.

Rising inflation is a sign of strong US consumer demand, but both stocks and bond normally react negatively to level of price growth that would necessitate higher interest rates.

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