U.S. inflation came in lower than anticipated in January, with an increase in the Consumer Price Index (CPI) of 0.2 percent for a 2.4 percent increase from January of last year. The latest report from the Bureau of Labor Services (BLS), released Wednesday, shows that housing costs were the biggest driver of inflation last month, with an increase of 0.2 percent. Energy costs fell significantly, down 1.5 percent for the month. Food prices increased by 0.2 percent, but the price of eggs—a major consumer frustration during the early stages of the second Trump administration—fell 7 percent; eggs are now down nearly 60 percent since reaching record highs in March of 2025.

The report beat expectations, as economists surveyed by Dow Jones had forecast monthly and annual increases of 0.3 percent and 2.5 percent, respectively. The better-than-expected report could impact whether the Federal Reserve cuts rates again at its next meeting in March, although annual inflation remains slightly above the target of 2 percent.