Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Swipe for next article

Independent Bulletin homepage

Download our
Social Partner

We are 8 logo (opens in a new tab)

What the CPI report means for your wallet as inflation cools

The report beat expectations, which predicted inflation to hit 2.5 percent in January — The report beat expectations, which predicted inflation to hit 2.5 percent in January (AP)

US inflation dropped to 2.4% in January, reaching its lowest level since May 2025 and exceeding economists' predictions.
The Consumer Price Index report also showed that core inflation, which excludes volatile food and energy costs, decreased to 2.5%.
Gas prices were down 3.2%, while electricity costs fell 0.1% and tax return prep and accounting fees fell 13.8%.
However, several categories saw price increases including cookies (+3.2%), bacon and related products (+4.3%) and fresh fish and seafood (+3.6%).
This positive inflation news follows a strong jobs report earlier in the week, which revealed 130,000 new jobs were added in January.

Inflation cools more than expected as latest data shows easing of price hikes — In full