US consumer inflation eased in January, with the Consumer Price Index (CPI) rising 2.4% year-on-year, the lowest since May 2025. This came in slightly below predictions, marking a drop from 2.7% in December, helped by falling energy costs. The Department of Labor reported a 1.5% monthly fall in energy prices, including petrol, while food costs rose 0.2% from December and 2.9% annually. Deputy White House Press Secretary Kush Desai praised the results, stating they show President Donald Trump "has defeated" inflation increases seen under the previous administration. However, rising prices in food and other essentials continue to strain households. Tariffs brought in by Trump have raised business costs but have not caused broad inflation surges as many firms used inventory to ease price hikes. Economist Heather Long said the cooler inflation is "encouraging news for many American families." The Federal Reserve noted lower spending by low-income groups on non-essentials. Despite this, Diane Swonk of KPMG warned that some inflation measures might be subdued due to recent government shutdown effects. Core inflation, which excludes food and energy, stood at 2.5%, slightly lower than December. Swonk added that while tariffs have impacted some sectors, recent tariff exemptions, especially on agriculture, aim to reduce cost pressures. She believes inflation will show more improvement later this year. The Federal Reserve cut interest rates three times last year but seeks more sustained inflation improvement before further cuts. A strong jobs market and ongoing price pressures may keep rates steady for now.