U.S. Inflation Cools, Exceeding Economists Expectations

Published: Friday, February 13, 2026 at 4:02 pm

U.S. Inflation Cools, Surpassing Economic Forecasts

Washington, D.C. - The U.S. Labor Department announced Friday that inflation has eased, reaching its lowest point in several months. The Consumer Price Index (CPI) rose 2.4% in January, a decrease from 2.7% in January of the previous year. This figure surprised some economists who had anticipated a rate of 2.5%.

Core inflation, which excludes food and energy prices, also saw a slight decrease, falling to 2.5% from 2.6%. This marks the lowest overall inflation rate since May of the previous year.

The data follows the release of the January jobs report, which also exceeded expectations. The report indicated that 130,000 jobs were added during the month, and the unemployment rate decreased to 4.3%.

According to the report, food prices saw a modest increase in January, while energy prices decreased by 1.5%. Car insurance rates also fell. Housing costs rose 0.2% in January, with the rental cost of owned housing up 3.3% compared to the same period in the previous year.

These figures arrive amidst growing uncertainty regarding tariffs. A recent study by the Federal Reserve Bank of New York indicated that nearly 90% of the economic costs associated with tariffs have been borne by U.S. businesses and their customers.

BNN's Perspective: The cooling of inflation is welcome news, suggesting that the economy may be stabilizing. However, the impact of tariffs and their effect on consumer prices and businesses remains a concern. Policymakers should carefully monitor these factors to ensure sustainable economic growth.

Keywords: Inflation, CPI, Consumer Price Index, Core Inflation, Jobs Report, Unemployment Rate, Tariffs, Economy, Labor Department, Economic Data

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