US inflation dropped to 2.4% in January after tariff-driven price swings last year. Prices rose 0.2% from December, while core inflation increased 0.3%. Economists had expected a slightly higher annual rate. Inflation reached 2.3% in April, climbed to 3% in September, and fell to 2.7% by December. The White House called the data proof that its economic agenda controls inflation. Wall Street now watches for signals on interest rate cuts. The Federal Reserve paused cuts in January and will decide again in March. Jerome Powell said tariff effects will raise prices once before stabilizing. The labor market stayed resilient, but job growth slowed to 181,000 in 2025 after revisions. Trump highlighted GDP growth and price stability and praised his economic record. Polls show falling voter approval, with inflation receiving the weakest support. Republicans fear the trend before the midterm elections. The administration recently proposed measures to reduce housing, credit card, and drug costs.
US Inflation Falls to 2.4% in January
By OMN AI
OMN AI
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