Americans Experience Gas Price Relief as January 2026 CPI Data Shows Annual Cost Decline
‘The Big Money Show’ panel reacts to cooler-than-expected inflation data, falling energy prices, and growing expectations for multiple Fed rate cuts in 2026.
Americans are experiencing some relief as gasoline prices have significantly declined over the past year, according to the latest inflation data released by the Labor Department.
On Friday, the Bureau of Labor Statistics published the consumer price index (CPI) for January, revealing that headline inflation rose by 2.4% year-over-year. In contrast, core CPI, which excludes the often volatile food and energy sectors, increased by 2.5% during the same period.
Energy prices saw a decrease of 1.5% in January, remaining relatively stable over the past year with a slight decline of just 0.1%. This trend is largely attributed to falling gas prices.
The index for all types of gasoline indicated a 3.2% drop in January, with prices down 7.5% compared to the previous year, as reported by the BLS.
INFLATION EASED SLIGHTLY IN JANUARY BUT REMAINED WELL ABOVE THE FED’S TARGET
Gas prices have declined over the last year, helping household budgets. (Justin Sullivan/Getty Images)
The U.S. Energy Information Administration and Federal Reserve reported that the average price of gas nationwide was $2.90 per gallon as of February 10. This marks a decrease from $3.13 per gallon a year ago, reflecting a decline of approximately 7.3%, which aligns with the January CPI data.
In addition to gasoline, the latest CPI inflation data indicated relief in other energy categories. CALIFORNIA ‘TRULY AT A BREAKING POINT,’ STATE SENATOR SAYS AS REFINERIES CLOSE AND GAS PRICES SURGE
Costs for propane, kerosene, and firewood fell by 1.5% on a monthly basis and were down 7.9% year-over-year. Additionally, fuel oil prices dropped 5.7% in January and decreased by 4.2% over the past year.
While gas prices and certain energy categories have provided relief to consumers, other energy types have seen price increases, somewhat offsetting this relief.
TRUMP CONSIDERS CAPPING STATE GAS TAX, SIGNALS POSSIBLE RELIEF FOR CALIFORNIANS
Gasoline prices fell in January, according to the latest consumer price index data. (Al Drago/Bloomberg via Getty Images)
Electricity prices remained relatively stable, showing little change on a monthly basis, but increased by 6.3% over the past year. Meanwhile, utility gas service costs surged by 1% in January and are now 9.8% higher than last year, posing a significant burden for households relying on gas for heating this winter.
Raymond James Chief Economist Eugenio Aleman noted that the “picture for February’s CPI will probably be very different than January’s as energy prices are likely to show positive prints.” He added, “However, we don’t expect increases in transportation services prices to remain as strong during the month, and thus, inflation’s behavior will probably depend on how strong the reversal in energy prices was in February and what happens to shelter prices during the month.”
‘The Big Money Show’ panel reacts to cooler-than-expected inflation data, falling energy prices, and growing expectations for multiple Fed rate cuts in 2026.
Americans are experiencing some relief as gasoline prices have significantly declined over the past year, according to the latest inflation data released by the Labor Department.
On Friday, the Bureau of Labor Statistics published the consumer price index (CPI) for January, revealing that headline inflation rose by 2.4% year-over-year. In contrast, core CPI, which excludes the often volatile food and energy sectors, increased by 2.5% during the same period.
Energy prices saw a decrease of 1.5% in January, remaining relatively stable over the past year with a slight decline of just 0.1%. This trend is largely attributed to falling gas prices.
The index for all types of gasoline indicated a 3.2% drop in January, with prices down 7.5% compared to the previous year, as reported by the BLS.
INFLATION EASED SLIGHTLY IN JANUARY BUT REMAINED WELL ABOVE THE FED’S TARGET
Gas prices have declined over the last year, helping household budgets. (Justin Sullivan/Getty Images)
The U.S. Energy Information Administration and Federal Reserve reported that the average price of gas nationwide was $2.90 per gallon as of February 10. This marks a decrease from $3.13 per gallon a year ago, reflecting a decline of approximately 7.3%, which aligns with the January CPI data.
In addition to gasoline, the latest CPI inflation data indicated relief in other energy categories. CALIFORNIA ‘TRULY AT A BREAKING POINT,’ STATE SENATOR SAYS AS REFINERIES CLOSE AND GAS PRICES SURGE
Costs for propane, kerosene, and firewood fell by 1.5% on a monthly basis and were down 7.9% year-over-year. Additionally, fuel oil prices dropped 5.7% in January and decreased by 4.2% over the past year.
While gas prices and certain energy categories have provided relief to consumers, other energy types have seen price increases, somewhat offsetting this relief.
TRUMP CONSIDERS CAPPING STATE GAS TAX, SIGNALS POSSIBLE RELIEF FOR CALIFORNIANS
Gasoline prices fell in January, according to the latest consumer price index data. (Al Drago/Bloomberg via Getty Images)
Electricity prices remained relatively stable, showing little change on a monthly basis, but increased by 6.3% over the past year. Meanwhile, utility gas service costs surged by 1% in January and are now 9.8% higher than last year, posing a significant burden for households relying on gas for heating this winter.
Raymond James Chief Economist Eugenio Aleman noted that the “picture for February’s CPI will probably be very different than January’s as energy prices are likely to show positive prints.” He added, “However, we don’t expect increases in transportation services prices to remain as strong during the month, and thus, inflation’s behavior will probably depend on how strong the reversal in energy prices was in February and what happens to shelter prices during the month.”
