Inflation Falls to Near-Five-Year Low, 2026-Feb-13

The U.S. annual inflation rate declined to 2.9% in January 2026, the lowest level since July 2021, according to the Bureau of Labor Statistics. The drop followed a 3.2% reading in December 2025 and reflects lower gasoline prices and moderating housing cost increases. The core personal consumption expenditure (core PCE) price index, a key gauge of inflation, eased to 4.1%, down from 4.5% in December 2025. The Federal Reserve is closely monitoring these readings as it weighs its next monetary policy decision in February 2026.