Inflation measure falls to nearly five-year low as gas prices fall and housing costs cool

Associated Press (AP)EN 4 min read 100% complete by By CHRISTOPHER RUGABERFebruary 13, 2026 at 03:23 PM

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long article 4 min

A key inflation measure in the U.S. fell to 2.4% in January, nearly a five-year low, driven by lower gas prices and slower growth in apartment rental costs. The core inflation rate, excluding food and energy, also decreased to 2.5%, the smallest increase since March 2021. While this offers some relief from recent high costs, consumer prices remain about 25% higher than five years ago. On a monthly basis, overall and core consumer prices rose slightly. Factors like tariffs, largely absorbed by U.S. companies and consumers, and potential future cost increases passed on to consumers, could keep inflation elevated.

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Harvard 30% Washington 30% Federal Reserve Bank of New York 40% Donald Trump 50% United States ×260% Federal Reserve ×270%

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inflation 100% consumer prices 80% gas prices 70% rental prices 70% tariffs 60% federal reserve 60% affordability 50% core inflation 50% grocery prices 50%