According to government data released Friday, consumer inflation in the US decreased somewhat more than anticipated in January as energy costs fell.
Despite President Donald Trump’s contention that there is almost no inflation, analysts caution that policymakers must show sustained improvement before they can lower interest rates again later this year.
According to the Department of Labor, the consumer price index (CPI) increased 2.4 percent year over year, which was less than the median projection of analysts and a decrease from December’s 2.7 percent increase. This was the lowest level since May 2025.
He told reporters that inflation was “way down, and we have it back on track.” Trump praised the findings.
However, concerns over affordability have gained prominence in recent months as Trump’s tariffs have affected the largest economy in the world and as people have been burdened by price rises in sectors like food.
Businesses have reported greater business costs, despite the fact that tariffs have not caused a general spike in inflation. In an attempt to lessen the impact, many businesses have stocked up on inventory before anticipated levy hikes and refrained from fully passing on higher costs to customers.
Late last year, Trump also broadened a slate of tariff exemptions, particularly on agriculture imports, as he came under pressure from voters grappling with soaring costs of living.
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