Inflation Eases in January

Inflation dropped in January to the lowest level in eight months, according to an analysis from the National Association of Home Builders’ Eye on Housing. The Consumer Price Index (CPI) components have resolved distortions from the government shutdown last October, but the shelter index will remain affected through April due to the imputation method used for housing costs.

Households still face elevated costs as tariffs are passed through to consumers, even as the pace of price growth slows. The CPI rose by 2.4% in January compared to of last year, according to the Bureau of Labor Statistics’ (BLS) most recent report. This is the lowest level since May 2025. 

The “core” CPI increased by 2.5% over the past twelve months. A large portion of the “core” CPI is the housing shelter index, which increased 3.0% over the year. In January, the shelter index rose by 0.2%