The annual inflation rate in the US slowed to 2.4% in January 2026, its lowest level since May, down from 2.7% in each of the previous two months and below forecasts of 2.5%. The deceleration largely reflects base effects, as higher readings from a year ago drop out of the annual calculation. Price pressures eased notably in the energy sector, with prices falling 0.1%, after a 2.3% rise in December, led by gasoline (-7.5% vs -3.4%) and fuel oil (-4.2% vs 7.4%). Prices of natural also rose at a slightly slower pace (9.8% vs 10.8%). A decline was also seen in prices for used cars and trucks (-2% vs 1.6%) while inflation slowed for food (3.1% vs 2.9%) and shelter (3% vs 3.2%). On a monthly basis, the CPI rose by 0.2%, below 0.3% in December and forecasts of 0.3%. Annual core inflation eased to 2.5%, its lowest reading since March 2021, compared with 2.6% in the prior month and in line with expectations. On a monthly basis, core CPI increased by 0.3%, slightly above 0.2% in December.