US inflation declined to 2.4% in January after last year’s tariff-driven price swings.
The consumer price index rose 0.2% for the month, while core inflation increased 0.3%.
Economists had expected a slightly higher annual rate of 2.5%.
Prices fluctuated strongly in 2024. Inflation dropped to 2.3% in April, then climbed to 3% in September before easing again.
The White House said the new figure proves its economic agenda is reducing inflation and denied lasting tariff effects.
Investors now watch for signals on interest rates. The Federal Reserve paused cuts in January and will decide again in March.
Jerome Powell expects tariffs to cause only a temporary rise in goods prices.
The labor market remained stable in January, but job growth slowed sharply in 2025 after revisions.
Trump highlighted GDP growth and price stability, yet polls show falling approval, especially on inflation.
These numbers worry Republicans before the midterms.
The administration has recently proposed measures to lower housing costs, credit card debt, and drug prices.
