Annual inflation rate in January slows to 2.4%, hitting an eight-month low

　　This economic report released on "Black Friday" unexpectedly brought good news: annual inflation has slowed significantly.

　　However, the details of the latest Consumer Price Index (CPI) reveal a more severe side: some price pressures have not only persisted but are even accelerating.

　　The US Bureau of Labor Statistics released the CPI report on Friday:

　　In January, consumer prices rose 2.4% year-on-year, hitting an eight-month low and a significant cooldown from December's 2.7%.

　　On a month-on-month basis, prices increased by 0.2%, slower than in December. This was due to a sharp drop in gasoline prices, continued moderation in housing-related costs after years of increases, and more moderate rises in food prices.

　　Friday's monthly data was better than expected, as economists had previously forecast a 0.3% increase month-on-month.

　　The market had expected the year-on-year increase to slow to 2.5%, but due to falling gasoline and food prices, inflation further retreated to 2.4%. The base effect also played a role—since price increases in January 2025 were excessively high, this year's January data looked particularly impressive in comparison.

　　The closely watched core CPI (excluding the more volatile food and energy prices) also saw its year-on-year growth rate fall.

　　Core CPI slowed to 2.5%, the lowest level since March 2021, right before the surge in inflation during the pandemic.

　　But the month-on-month trend of core inflation reversed:

　　Core CPI rose 0.3% month-on-month, a five-month high and higher than December's 0.2%.

　　Joe Brusuelas, Chief Economist at RSM US, wrote in an email to CNN:

　　"While the overall inflation data is mild and encouraging, it is too early to declare victory over inflation. The data clearly shows that there were significant price fluctuations at the start of the year, and prices for tariff-sensitive goods continue to rise."

Editor: Guo Mingyu