US inflation cools more than expected, kindling hopes of Fed rate cut

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US consumer inflation cooled more than expected in January, with the Consumer Price Index (CPI) rising 2.4% year-on-year, according to the Department of Labour. This figure, the lowest since May 2025, was attributed in part to dipping energy prices. The report has fueled hopes that the Federal Reserve might cut interest rates later in the year, although analysts caution that sustained improvement is needed. While the White House celebrated the report as evidence of success in combating inflation, concerns about affordability persist due to rising prices in areas like food. Although tariffs haven't caused a broad inflation surge, businesses have reported higher costs.
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