January U.S. CPI Slows to 2.4% on Year, Energy Index Dips


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- U.S. headline inflation cooled in January as the 
Consumer Price Index (CPI) grew 2.4% year-on-year, retreating from December's 
print of 2.7% and economists' forecasts of 2.5%, the Bureau of Labor Statistics 
reported Friday (2/13).

   Core inflation, as measured by the CPI's all-items less food and energy 
index, matched expectations by expanding 2.5% year-on-year in January versus a 
prior 2.6%.

   The 2.4% annual expansion in headline CPI represents the smallest yearly 
increase since May 2025, though price growth remains above the Federal 
Reserve's long-term 2% target. The central bank maintained interest rates in a 
3.5%-3.75% range at a policy decision on January 28, after three rate cuts in 
the previous year.

   The January CPI data showed the energy index sliding 1.5% over the month, 
which partially offset gains in the food and shelter categories. For the 12 
months ending in January, the energy index decreased 0.1%.

   The food index, in comparison, rose 0.2% in January and 2.9% for the year.  
The shelter index climbed 0.2% in January and 3.0% year-on-year.

   The sub-indexes for airline fares, personal care, recreation, medical care 
and communication registered monthly gains too. Conversely, the indexes for 
used cars and trucks, household furnishings and operations, and motor vehicle 
insurance recorded decreases during the first month of the year.

   In response to the data, the August NYMEX WTI futures contract eased losses 
to trade $0.11 lower at $62.73 bbl. The U.S. dollar index dropped by 0.022 
points to 96.815 against a basket of foreign currencies.




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