January 2026 CPI Report: Inflation Declines Yet Stays Above Federal Reserve’s Target
248 Ventures Chief Investment Strategist Lindsey Bell and Claro Advisors founder Ryan Belanger discuss the Dow hitting 50,000, Japan’s Nikkei rally, and market volatility on Mornings with Maria.
This story on the January 2026 CPI inflation report is developing and will be updated with more details.
Inflation remained elevated in January as the pace of consumer price growth continued to exceed the Federal Reserve’s target rate, raising concerns about affordability for consumers.
The Bureau of Labor Statistics reported on Friday that the consumer price index (CPI)—a comprehensive measure of the costs of everyday goods such as gasoline, groceries, and rent—rose by 0.2% on a monthly basis in January. Year-over-year, the CPI trended down to 2.4%, a slight decrease from 2.7% in December.
Expectations vs. Reality
Both monthly and yearly figures were marginally lower than the predictions made by economists surveyed by LSEG, who had anticipated a 0.3% monthly increase and a 2.5% rise from the previous year.
Core prices, which exclude the more volatile categories of gasoline and food to provide a clearer picture of price trends, increased by 0.3% from the prior month. Year-over-year, core prices slowed to 2.5%, down from 2.6% last month. These figures aligned with economists’ expectations.
Economists have pointed out that inflation data from December 2025 through April 2026 may be skewed due to interruptions in data collection caused by last fall’s 43-day government shutdown. This disruption prevented the Bureau of Labor Statistics from gathering crucial data, leading to a carry-forward methodology to compensate for the absence of an October CPI report and missing data in November’s report.
As a result, experts predict that this will likely create a downward bias in inflation data until fresh data becomes available in the spring, which should help to correct the discrepancies.
The Cost of Living Breakdown
Expert Analysis
248 Ventures Chief Investment Strategist Lindsey Bell and Claro Advisors founder Ryan Belanger discuss the Dow hitting 50,000, Japan’s Nikkei rally, and market volatility on Mornings with Maria.
This story on the January 2026 CPI inflation report is developing and will be updated with more details.
Inflation remained elevated in January as the pace of consumer price growth continued to exceed the Federal Reserve’s target rate, raising concerns about affordability for consumers.
The Bureau of Labor Statistics reported on Friday that the consumer price index (CPI)—a comprehensive measure of the costs of everyday goods such as gasoline, groceries, and rent—rose by 0.2% on a monthly basis in January. Year-over-year, the CPI trended down to 2.4%, a slight decrease from 2.7% in December.
Expectations vs. Reality
Both monthly and yearly figures were marginally lower than the predictions made by economists surveyed by LSEG, who had anticipated a 0.3% monthly increase and a 2.5% rise from the previous year.
Core prices, which exclude the more volatile categories of gasoline and food to provide a clearer picture of price trends, increased by 0.3% from the prior month. Year-over-year, core prices slowed to 2.5%, down from 2.6% last month. These figures aligned with economists’ expectations.
Economists have pointed out that inflation data from December 2025 through April 2026 may be skewed due to interruptions in data collection caused by last fall’s 43-day government shutdown. This disruption prevented the Bureau of Labor Statistics from gathering crucial data, leading to a carry-forward methodology to compensate for the absence of an October CPI report and missing data in November’s report.
As a result, experts predict that this will likely create a downward bias in inflation data until fresh data becomes available in the spring, which should help to correct the discrepancies.
