The core Consumer Price Index (CPI), which excludes volatile food and energy costs, increased 0.2% month-on-month and 2.6% year-on-year, both 0.1 percentage points below market expectations, the Bureau of Labor Statistics reported Tuesday (January 13).
The 2.6% annual rise in core CPI marks the slowest pace of inflation since March 2021. On a headline basis, the all-items CPI rose 0.3% for the month and 2.7% year-on-year, matching both November’s increase and consensus estimates.
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Monthly, headline CPI increased 0.3%, while core CPI grew 0.2%. Economists had anticipated a 0.3% monthly increase and a 2.7% annual rise for both measures.
US Federal Reserve officials are widely expected to hold interest rates steady later this month after three straight cuts to close out 2025. Officials are divided over how much further to lower rates this year, balancing concerns that tariffs may keep price pressures elevated while also being mindful of softness in the labour market.
(Edited by : Shoma Bhattacharjee)
