US CPI Data: January 2026 Inflation Update

Source: U.S. Bureau of Labor Statistics

The January 2026 Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics shows inflation continuing to moderate, though underlying service-sector pressures remain.

The CPI-U rose 0.2 percent in January on a seasonally adjusted basis and increased 2.4 percent over the past 12 months. Core CPI (all items less food and energy) rose 0.3 percent for the month and 2.5 percent year over year.

What the Snapshot Shows

• All Items (Headline CPI): +2.4%
• Food: +2.9%
• Energy: -0.1%
• All Items Less Food & Energy (Core CPI): +2.5%

Food inflation continues to run above the headline rate, while energy prices declined slightly over the past year, helping to moderate overall inflation.

Shelter and Services Remain Firm

Shelter rose 0.2 percent in January and remains a key contributor to inflation trends. Services-related categories continue to show steady price pressure, keeping core CPI slightly above headline CPI.

While goods inflation has cooled meaningfully from prior peaks, services inflation has not fully normalized.

Market Implications

For equities, a 2.4 percent headline CPI supports the soft-landing narrative. Inflation is trending lower relative to previous highs.

For bond markets, the 0.2 percent monthly print suggests inflation is not reaccelerating. Sustained readings near this level would align with gradual convergence toward the Federal Reserve’s 2 percent target.

For the Federal Reserve, the data reinforces patience. Inflation progress continues, though core remains modestly above target.

Bottom Line

January’s CPI report reflects continued disinflation on a year-over-year basis, with headline CPI at 2.4 percent and core CPI at 2.5 percent.

Energy softness is helping contain inflation, while services and shelter remain firm. The data signals stabilization rather than renewed inflation pressure.