Inflation in the United States cooled in January, reaching its lowest level in nine months, according to new data released by the Bureau of Labor Statistics. The Consumer Price Index (CPI) rose 2.4% in January compared to a year earlier, a figure that defied economists' expectations and indicated easing price pressures across the country, as reported by CBS News and ABC News.
The January CPI reading, representing the slowest pace of inflation since May 2025, was down from December's 2.7% annual rate, according to CBS News. Economists polled by financial data firm FactSet had predicted a 2.5% rise for January. "The fact that price pressures in January were contained is notable given the usual upward pressure from annual price resets and seasonal effects," said Lydia Boussour, senior economist at EY-Parthenon, in a report, as cited by CBS News.
While the inflation rate has decreased, it remains nearly half a percentage point higher than the Federal Reserve's target rate of 2%, as noted by ABC News. Affordability continues to be a concern for many Americans, especially as the political calendar moves closer to election season, according to ABC News. White House press secretary Karoline Leavitt touted the inflation report, ABC News reported.
In other news, the center-right Bangladesh Nationalist Party (BNP) secured a landslide majority in parliament, 18 months after mass protests ousted the country's longest-serving prime minister Sheikh Hasina, according to BBC World. BNP leader Tarique Rahman is set to be the next prime minister and faces significant economic challenges.
Additionally, US President Donald Trump announced the reversal of the so-called endangerment finding, a key Obama-era scientific ruling that underpins much of US environmental legislation, according to BBC World. Experts predict various environmental and economic impacts as a result of this decision by the US Environmental Protection Agency (EPA), which is expected to be challenged in the courts by environmental groups.
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