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Inflation rose 0.2% in January, and trended down to 2.4% on a year-over-year basis. That was down slightly from 2.7% in December. Both figures were less than the expectations heading into the release of the report.
The annualized rate is now down to where it was the month after President Donald Trump in April 2025 announced tariffs on U.S. imports.
This is the second report in a span of three days that show the Trump economic policies are working. The January jobs report showed that the economy added 160,000 jobs, which was nearly double expectations.
Now all eyes will be on the Federal Reserve, which holds its next meeting in mid-March.