A key measure of inflation fell to nearly a five-year low last month as apartment rental price growth slowed and gas prices fell, offering some relief to Americans grappling with the sharp cost increases of the past five years, according to an Associated Press report.
Inflation dropped to 2.4% in January compared with a year earlier, down from 2.7% in December and not too far from the Federal Reserve’s 2% target. Core prices, which exclude the volatile food and energy categories, rose just 2.5% in January from a year ago, down from 2.6% the previous month and the smallest increase since March 2021.
Friday’s report suggests inflation is cooling, but the cost of food, gas, and apartment rents has soared after the pandemic, with consumer prices still about 25% higher than they were five years ago. The increase in such a broad range of costs has kept “affordability,” a topic that helped shape the most recent U.S. presidential election, front and center as a dominant political issue.
