US Inflation Falls to 2.4% as Tariff Effects Fade

US inflation dropped to 2.4% in January after last year’s tariff-driven price swings. The consumer price index rose 0.2% for the month. Core inflation increased 0.3%. Economists had expected a slightly higher annual rate. Prices moved sharply during 2025, hitting 2.3% in April and 3% in September. They eased to 2.7% by year’s end. The White House credited Trump’s economic agenda for the decline. Officials argued low inflation will support future Federal Reserve rate cuts. Wall Street watches the data for policy signals. The Fed paused cuts in January and will decide again in March. Jerome Powell said tariff effects will cause a temporary price peak. He expects goods prices to stabilize later this year. The labor market remained stable, but job growth slowed to 181,000 in 2025. Trump highlighted GDP growth and price stability. Polls show falling approval, with inflation receiving his weakest ratings. The administration now promotes new measures on housing, debt, and drug prices.