According to the US Department of Labor, the inflation rate in the USA fell to 2.4 percent at the beginning of the year. In December 2025 they were Consumer prices increased by 2.7 percent. This means that the inflation rate in January is 0.3 percentage points lower than in the previous month. Economists had expected a decline, but on average they expected it to be slightly higher Inflation rate assumed to be 2.5 percent.
The Inflation rate refers to the change in consumer prices compared to the same month last year. Their decline in January is mainly due to falling energy prices. While services have become more expensive than average year-on-year, gasoline prices have fallen by 7.5 percent.
Fed primarily looks at core inflation
Compared to December 2025, energy prices also fell; US citizens had to pay around 5.7 percent less for heating oil in January than at the end of the year. On the other hand, food, clothing and services became slightly more expensive. Looking ahead to the November congressional midterm elections the increased cost of living in the USA one of the central topics of the political debate.
Core inflation, i.e. annual inflation without the volatile prices for energy and food, also weakened. It fell to 2.5 from 2.6 percent. The
US Federal Reserve The Federal Reserve (Fed) pays particular attention to this rate because it closely reflects the underlying inflation trend.
As a result of the effects of the corona pandemic and the Russian war of aggression against Ukraine, inflation had risen in the USA in June 2022 it reached 9.1 percent, the highest value in 40 years. Since then it has gradually declined again. Last year had Against this background, the Fed raised the key interest rate seven times. As inflation eases, the pressure on the central bank should also ease.
US tariffs have little impact
In view of the declining inflation, experts are wondering why US tariff policy has not yet been reflected in the inflation data. As an observer you are surprised, said LBBW analyst Dirk Chlench. The imposition and increase of various US tariffs would have led to an increase in inflation.
“US companies are apparently managing to offset the increase in their purchase prices through productivity gains,” said Chlench. In addition, according to the expert, it is currently difficult to pass on cost increases to end consumers outside of the luxury segment. Nord/LB expert Tobias Basse also said that an “inflation catastrophe feared when looking at the United States” is still not happening.
