Inflation Eases Amid Cheaper Gasoline and Rental Moderation

U.S. consumer prices saw a slowdown in January due to cheaper gasoline and moderated rental inflation, though costs rose in other areas. The Consumer Price Index indicated underlying inflation pressures as businesses increased prices. Despite high costs, the Federal Reserve is unlikely to cut interest rates soon.

In January, U.S. consumer prices increased less than anticipated as cheaper gasoline and moderated rental inflation offered temporary relief, although households faced rising costs in other sectors.

The Consumer Price Index revealed that underlying inflation pressures remained, with businesses implementing price hikes for goods and services, such as personal care and airline fares.

Despite these pressures, the Federal Reserve is unlikely to reduce interest rates soon, as inflation was still above preferred levels.

(With inputs from agencies.)