US consumer inflation eases more than expected to lowest since May

WASHINGTON: Consumer inflation in the United States cooled slightly more than expected in January, government data showed Friday (Feb 13), as energy prices dipped.

The consumer price index (CPI) rose 2.4 per cent year-on-year, the Department of Labor said, down from December’s 2.7 per cent and slightly below analysts’ median forecast.

This was also the lowest level since May 2025.

Affordability worries have come to the fore in recent months as price increases in areas like food have weighed on households, and as President Donald Trump’s tariffs flowed through the world’s biggest economy.

Although tariffs have not triggered a broad inflation surge, firms have reported higher business costs. Many companies, however, have tried to soften the blow by stocking up on inventory ahead of planned levy hikes and avoided passing on additional hikes in full to consumers.

For now, CPI was up 0.2 per cent on a month-on-month basis in January, inching down from December’s 0.3 per cent rise.

This was helped by a 1.5 per cent month-on-month slide in overall energy costs, in part due to gasoline.

Food costs remained 0.2 per cent higher than in December, although month-on-month increases have eased as well.

Food prices were up 2.9 per cent from a year ago, the report said.

“This is encouraging news for many American families that have been struggling,” said Navy Federal Credit Union chief economist Heather Long in a note.