January brought a surprising relief for consumers as inflation slowed more than anticipated.
The latest figures from the Bureau of labour Statistics revealed that in January, overall prices for goods and services rose slightly by 0.2% compared to December and over the past year, prices increased by 2.4% which is less than the 2.7% rise seen the previous month.
Both the monthly and yearly increases were similar than what economists had predicted.
“This is great news on inflation,” said Heather Long, chief economist at Navy Federal Credit Union, as per CNBC News.
He added, “Inflation fell to the lowest level since May and key items such as food, gas and rent are cooling off. This will provide much needed relief for middle class and moderate-income families.”
In January, the cost of energy such as gas and electricity went down by 15% compared to December and prices for used cars also dropped by 1.8% over the same period.
Even though overall inflation is slowing, certain expenses are still rising sharply and could remain a burden for consumers in 2026.
Specifically prices for items like coffee and beef increased significantly over the past year, while airfares jumped notably from December to January.
