BLS: Jan Core CPI 2.5% Y/Y, Inflation Slows to 0.2% MoMo

The Bureau of Labor Statistics reported January core CPI rose 2.5% year-over-year and 0.3% month-over-month, down from December’s 2.6% annual pace and 0.3% monthly increase. Headline CPI for the month was 2.7% Y/Y, with core goods prices expected to moderate in 2026 amid continued tariff pass-through and seasonal inflation pressures. Notably, coffee and beef prices rose 2.9% Y/Y in January, while energy and food categories were excluded from the core calculation. Data released on February 13, 2026, provides the first official inflation reading for the start of 2026, following a year of prices hovering above the Federal Reserve’s 2% target.