Inflation came in below economists' forecasts and slowed from December's 2.7% annual rate.

A measure of inflation may have fallen to a five-year low in January as rental costs have cooled, a sign that some prices are moderating while Americans continue to grapple with a big rise in overall prices in the past five years.

WASHINGTON (AP) — A key measure of inflation fell to nearly a five-year low last month as apartment rental price growth slowed and gas prices fell, offering some relief to Americans grappling with the sharp cost increases of the past five years.

Goldman’s new 3.05% PCE forecast is a brutal reality check for the Fed—and it could stall rate cuts for months.

Inflation cooled more than expected in January, according to consumer data released Friday by the Bureau of Labor Statistics.

Inflation cooled to 2.4% in January, nearing a five-year low as gas prices fell and rent growth slowed. While easing price pressures boost hopes for rate cuts, many Americans still face elevated costs compared to pre-pandemic levels.

Inflation in the United States eased at the start of 2026, providing a reprieve to the Federal Reserve as it contends with yet another year of consumer prices rising faster than the central bank’s target. Here is what the latest Consumer Price Index showed on Friday.

The inflation reading, the lowest since May 2025, shows grocery, gas and rent prices are cooling.

The core CPI inflation rate fell to its lowest level since early 2021.