Fri, 13 Feb 2026

Fri, 13 Feb 2026 Inflation eases in US as prices for used cars fall

Prices rose by 2.4% in the year to January, the latest official figures show, the slowest pace since May.

* US inflation cooled last month with prices for energy and used cars falling.
* The consumer price index rose by 2.4% over the 12 months to January, down from 2.7% in the previous month.
* Analysts say this slowdown could add fuel to arguments that interest rates should be cut without stoking inflation.
* However, some analysts warn that further progress towards the Federal Reserve's 2% target may stall if companies pass on tariff costs to consumers or labor shortages push up prices for services.
* The US economy is described as "in fine fettle" with strong growth, stable inflation, and a job market looking firmer.
* President Trump hailed the report as good news for the economy, saying it was "unbelievable".
* Job growth last month was stronger than expected, and markets currently expect the Fed to cut rates in June.
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