US inflation fell to 2.4% in January after last year’s tariff-driven price swings. The consumer price index rose 0.2% for the month, while core inflation increased 0.3%. Economists had expected a slight decline to 2.5%. Inflation reached 2.3% last April, climbed to 3% in September, and ended the year at 2.7%. The White House said its policies continue to control prices and dismissed concerns about tariff-related spikes. Investors now watch the Federal Reserve for signals on interest rates ahead of its March meeting. Fed chair Jerome Powell expects tariff effects to cause a temporary rise in goods prices before stabilizing this year. The labor market showed resilience in January, though overall job growth slowed compared with 2024. Recent polls show declining approval of Trump’s economic leadership, especially on inflation. In response, the administration has proposed measures targeting housing costs, credit card debt, and drug prices.
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