Jan 2026 CPI Up 0.2% Annual, Below Forecast; Fed Watch Looms Feb 20

The U.S. Bureau of Labor Statistics reported consumer prices rose 0.2% year-over-year in January, slightly less than the 0.3% median economist forecast. Core Personal Consumption Expenditures (core PCE) increased 0.4% annually, keeping the annual PCE price index near 4.9% in January. The softer-than-expected reading suggests some inflationary headway may be made, but monetary policy decisions remain front-and-center as the Federal Open Market Committee meets on February 20-21, 2026.