January Inflation 2026 Consumer Price Index 2.4% for 2025 (Janice Starts a Business to Pick Up Extra Money)

(Illustrative Only)

Janice starts an outdoor
clothing shop selling
snowmobile, side by side,
and atv clothing.
The goal is to take her
money and put it into
something she thinks
will make more than inflation.

She things Escanaba
might be a good place to start
her clothing line.

Inflation is a measure used to understand how the value of money changes over time. As inflation rises, your purchasing power falls. That’s why earning $20,000 a year a century ago meant something very different than earning the same amount today. When our grandparents paid 50 cents for a gallon of gasoline and we now pay $4, $5, or even $6 depending on the region, that’s inflation at work.

While taxes, import costs, and other factors influence prices, inflation itself is typically measured using the Consumer Price Index (CPI). The CPI tracks price changes across a collection of common goods and services. You can see the governments consumer price index below.

Inflation can occur for several reasons:

• Demand-pull inflation — too many dollars chasing too few goods.

• Cost-push inflation — rising expenses for raw materials, metals, tariffs, or supply chain disruptions.

• Inflation expectations — when people and businesses anticipate higher prices, which can reinforce rising costs.

So far this year, inflation has remained relatively moderate. A few categories have seen noticeable increases, which you can view in the charts linked above.

CONSUMER PRICE INDEX - JANUARY 2026

• Headline inflation (CPI) rose 0.2% in January 2026 on a seasonally adjusted basis.

• On a 12-month basis, consumer prices increased 2.4% (not seasonally adjusted).

• Core CPI (all items less food and energy) increased 0.3% in January (seasonally adjusted).

• Over the past year, core inflation was up 2.5% (not seasonally adjusted).

• Shelter prices contributed to the overall increase in January.

• The next CPI report (for February 2026 data) is scheduled for release on March 11, 2026, at 8:30 a.m. ET.