Jan 2026 CPI Up 0.3% Y/Y, Annual Growth Slows Faster Than Expected

The U.S. Bureau of Labor Statistics reported consumer prices rose 0.3% in January 2026, marking an annual increase of 3.4%. Annual growth slowed more than expected from 4.1% in December 2025 to 3.4%, the largest 12-month deceleration since late 2022. The core PCE price index, which excludes food and energy, increased 0.3% month-over-month and 3.9% year-over-year, in line with the Federal Open Market Committee’s 3.7% target for year-end 2025. The slower pace suggests central bank easing could be more likely in the coming months.