US Core Inflation Rate Lowest Since March 2021

The annual core consumer price inflation rate in the United States, which excludes volatile items like food and energy, edged down to 2.5% in January 2026, the lowest since March 2021, from 2.6% in the prior month. Figures came in line with market forecasts. The heavyweight shelter index increased 3%, down from December's 3.2%. Other indexes registered slower price- growth including recreation (2.5% vs 3%) and household furnishings and operations (3.9% vs 4%). Medical care inflation was unchanged at 3.2%, whereas personal care accelerated to 5.4% from 3.7%. On a monthly basis, core consumer prices rose by 0.3%, picking up from the 0.2% increase in the previous month and in line with market expectations.

The annual core consumer price inflation rate in the United States, which excludes volatile items like food and energy, stood at 2.6% in December 2025, the lowest since March 2021, matching November's reading. Figures came slightly below market expectations of 2.7%. Prices slowed mostly for used cars and trucks (1.6% vs 3.6% in November) and household furnishings and operations (4% vs 4.6%). Meanwhile, the heavyweight shelter index increased 3.2%, after a 3% rise in the prior month. Other indexes with notable increases over the last year include medical care (3.2% vs 2.9%), recreation (3% vs 1.8%), and personal care (3.7% vs 3.3%).

The annual core consumer price inflation rate in the United States, which excludes volatile items like food and energy, fell to 2.6% in November 2025, the lowest since March 2021 and below market expectations of 3%. The shelter index increased 3% over the last year. Other indexes with notable increases over the last year include medical care (+2.9%), household furnishings and operations (+4.6%), recreation (+1.8%), and used cars and trucks (+3.6%). The BLS did not collect data for October 2025 as a result of the 43-day government shutdown. As a result, figures for October were missing and the monthly rates for November were not released.