U.S. inflation cools to 2.4% in January, but utilities and heating costs stay elevated

The January CPI report showed inflation easing versus December, yet economists warn tariff and labor-supply policies may keep pressure on some categories — and a data quirk from last fall’s shutdown may understate the true pace.

## What happened

U.S. consumer inflation slowed in January, with headline CPI rising 2.4% year over year, as price pressures eased in categories like gasoline and food — though some household essentials remain sticky.

## Key details

- Headline CPI: +2.4% year over year in January, down from 2.7% in December and below expectations.

- Gasoline prices fell on both a monthly and annual basis; food inflation remained elevated by historical standards.

- Economists cited ongoing upward pressure from tariffs and immigration policy via higher goods costs and tighter labor supply.

- A data gap during last fall’s government shutdown may make inflation look lower ‘on paper’ than in reality, according to Moody’s.

## Market context

Markets are weighing whether disinflation is durable and how policy changes (tariffs, labor supply) could re-accelerate prices in 2026.

## Why it matters

Cooling inflation can shape expectations for Federal Reserve policy and move rates, the dollar and equity valuations — especially for growth stocks. But the report also highlights that ‘core’ household pain points (utilities, heating and some services) can remain hot even when the headline number falls.

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*Drafted for Kicukiro Tech on 2026-02-14 20:04 UTC. Source link below.*