Annual inflation rate fell to 2.4 percent in January, below expectations

Consumer prices rose 2.4 percent over the past year and 0.2 percent in January alone, according to data released Friday by the Labor Department.

The latest consumer price index report, which was delayed by the brief government shutdown earlier this month, showed inflation coming in below expectations.

Economists expected the annual inflation rate to fall to 2.5 percent in January from 2.7 percent in December, and monthly inflation to hold steady at 0.3 percent, according to consensus estimates.

The new inflation figures are a boost to President Trump and Republicans as they face pressure to show progress against rising prices. 

The annual inflation rate has lingered close to 2.6 percent since November 2024, when Trump rode backlash against record-high price growth to another term in the White House.

A little more than a year later, Trump has faced his own reckoning on inflation as his economic approval ratings drop and Democratic candidates post major victories in offyear elections.

A survey from NPR/PBS News/Marist released last week found that 59 percent of respondents disapprove of the president’s performance on the economy, a record high for disapproval and an increase of 2 percentage points from the month prior.

Fewer than 6 in 10 respondents to a Gallup poll released Tuesday said they expect to have a high quality of life over the next five years.

The January inflation decline, however, showed some easing pressure on household budgets last month.

“The January inflation numbers were a little better than expected. Price increases for services and goods remained moderate this past month,” said Scott Helfstein, head of investment strategy at Global X ETFs.

“Higher food costs were largely offset by lower energy costs.”

Energy prices fell 1.5 percent last month, and food prices rose 0.2 percent after rising 0.7 percent in December.