This story on the January 2026 CPI inflation report is developing and will be updated with more details.

Inflation remained elevated in January as the pace of consumer price growth stayed above the Federal Reserve’s target rate as policymakers weigh affordability concerns.

The Bureau of Labor Statistics on Friday said that the consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – rose 0.2% on a monthly basis in January and trended down to 2.4% on a year-over-year basis. That was down slightly from 2.7% in December.

Expectations vs. reality

Both figures were slightly cooler than the expectations of economists polled by LSEG, who predicted a 0.3% monthly gain and 2.5% increase from a year ago.

So-called core prices, which exclude volatile measurements of gasoline and food to better assess price growth trends, were up 0.3% from the prior month and slowed to 2.5% from a year ago from a reading of 2.6% last month. Those figures were in line with economists’ expectations.

Economists have noted that inflation data from December 2025 through April 2026 will be affected due to data collection interruptions resulting from last fall’s 43-day government shutdown. 

Due to the shutdown, the BLS wasn’t able to gather data and used a carry-forward methodology to make up for the lack of an October CPI report and missing data in November’s report. Going forward, economists say that is likely to impart a downward bias on inflation data until this spring, when fresh data will negate the discrepancy.

The cost of living breakdown

Expert analysis