Annual inflation rate fell to 2.4 percent in January, below expectations
The Hill
by Sylvan LaneFebruary 13, 2026
AI-Generated Deep Dive Summary
The annual inflation rate dropped to 2.4 percent in January, marking a decline that came in below economists' expectations. According to data released by the Labor Department on Friday, consumer prices rose 0.2 percent in January alone and 2.4 percent over the past year. This report, which was delayed due to the recent government shutdown, highlights inflationary pressures easing slightly compared to earlier projections. While the figures show a modest increase in both monthly and annual terms, they fall short of what many experts had anticipated.
The consumer price index (CPI) report provides valuable insights into the current state of inflation, which has been a key focus for policymakers and market analysts. The CPI measures changes in prices paid by urban consumers for goods and services, including food, energy, and healthcare. Over the past year, headline inflation has remained relatively stable, with factors such as falling gasoline prices contributing to the slower-than-expected growth. This moderation in price gains could provide some relief to households grappling with rising living costs.
From a political perspective, the latest inflation data may have implications for Federal Reserve policy and the broader economic outlook. With inflation running below the Fed's 2 percent target, officials may feel more inclined to maintain a patient approach to interest rate hikes. Additionally, the administration could use this news to emphasize its stance on trade policies and economic management under President Trump. As inflation remains a critical indicator of economic health, these developments will likely be closely monitored by both policymakers and the public in the months ahead.
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Originally published on The Hill on 2/13/2026