January inflation cools to 2.4%, lowest since May

Consumer prices rose by 0.2% overall in January, according to recent data released by the U.S. Bureau of Labor Statistics.

Overall, the inflation rose to 2.4% annually in January, a significant cooldown from previous months.

In December and November, inflation rates rose 2.7%, respectively. Those rates were still lower from the 3% inflation rate in September.

The price index for shelter rose 0.2% in January and accounted for the largest factor item in monthly increases. Similarly, the food index rose 0.2%. These increases were offset by a significant decrease in the cost of energy with a 1.5% lower rate.

Over a 12 month period ending in January, the energy index decreased 0.1% and the food index increased 2.9%.

“This is good news on inflation,” said Heather Long, chief economist at Navy Federal. “There may be one more bump from tariffs, but its encouraging to see a cooling off.”

Gas prices fell by 7.5% over the period of a year ending in January alongside 1.8% lower rate in used cars and trucks. Lon...