Domestic inflation report

US January Inflation Falls to 2.4%

Analysis based on 13 articles · First reported Feb 12, 2026 · Last updated Feb 13, 2026

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Market Impact

Direct

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Market Impact

U.S. markets moved into positive territory following the inflation report, as cooling inflation suggests the United States===Federal Reserve may cut interest rates. This could lead to lower borrowing costs for consumers and businesses, stimulating economic activity.

Financial services Retail Real estate

Event Summary

A key measure of inflation in the United States fell to 2.4% in January, a nearly five-year low, down from 2.7% in December. Core prices, excluding food and energy, rose 2.5%, the smallest increase since March 2021. This cooling trend, driven by slower apartment rental price growth and falling gas prices, brings inflation closer to the United States===Federal Reserve's 2% target. This development could allow the United States===Federal Reserve to cut its key short-term interest rate further this year, a move repeatedly demanded by Donald Trump. While some businesses like Naturepedic have faced increased costs due to tariffs, the overall trend suggests easing inflationary pressures, supported by more modest wage growth. Economists, including Luke Tilley of M and T Bank===Wilmington Trust, expect inflation to continue declining, potentially reaching the Fed's target by the end of 2026.

Key Actions

90 United States===Federal Reserve potentially cut key short-term interest rate

60 Donald Trump demanded interest rate cuts United States===Federal Reserve

40 Naturepedic raised prices due to tariffs

30 Naturepedic could cut prices due to tariff reduction

Entities Involved

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United States===Federal Reserve

The United States===Federal Reserve's target inflation rate of 2% is a key benchmark. The cooling inflation could allow the central bank to cut its key short-term interest rate further this year, which is a positive development for its policy goals.

Importance 90 Sentiment 50

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United States

The United States economy is directly impacted by the inflation figures, which affect consumer spending, borrowing costs, and the overall economic outlook. The cooling inflation offers some relief to Americans grappling with cost increases.

Importance 80 Sentiment 40

per

Donald Trump

Donald Trump has repeatedly demanded that the United States===Federal Reserve cut interest rates. The cooling inflation aligns with his demands, potentially offering political leverage. His tariffs are also mentioned as contributing to some price increases for businesses.

Importance 60 Sentiment 30

subs

M and T Bank===Wilmington Trust

Luke Tilley, chief economist for M and T Bank===Wilmington Trust, provides expert commentary on the inflation outlook, stating that inflation is not expected to rise again and will enable more rate cuts by the United States===Federal Reserve.

Importance 30 Sentiment 20

priv

Naturepedic

Naturepedic, an organic mattress manufacturer, has been affected by Donald Trump's tariffs, leading to increased costs and price hikes. However, some tariff delays and reductions offer potential relief, which could allow the company to cut prices.

Importance 20 Sentiment 10

cbnk

United States===Federal Reserve Bank of New York

A study released by the United States===Federal Reserve Bank of New York found that U.S. companies and consumers are paying nearly 90% of the tariffs' costs, providing data that supports the impact of tariffs on inflation.

Importance 10 Sentiment 10

Relationships

United States related ↔ United States===Federal Reserve

Donald Trump related ↔ United States

United States===Federal Reserve Bank of New York related ↔ United States===Federal Reserve

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