February 13, 2026
Inflation cooled down in the month of January but when it comes to the things you need to survive – those aren’t slowing down – they’re actually getting more expensive.
So first – according to today’s consumer price index the bureau of labor statistics says overall inflation was 2.4% higher than it was in January of 2025. While it’s not all the way down to the Federal Reserve’s 2% goal – it’s definitely better than the overall inflation number we saw in December when the CPI was 2.7%. So that’s what I mean when I say inflation appears to be “cooling.” It’s not increasing as fast as it was.
But that doesn’t necessarily mean that you are feeling that cool down. That’s because two of the three main things we all need to survive are in no way cooling down…they’re actually going up.
Let’s start with shelter – because BLS says that’s really the thing that keeps driving inflation up. Between January of 2026 and January of 2025 the cost for shelter was up 3%. And food – yeah – that’s going up too. Between January of 2026 and January 2025 overall food was up 2.9%. But when you break down where that increased number is coming from – it’s right here. Food away from home – which means basically any place where you get food outside of the grocery story – was up 4%.
Now – energy overall – technically- was down. BLS found when you combine all forms of energy – in January of 2026 energy was down point-one percent when compared to January 2025. The reason why it’s down –was mostly because of the decrease in gas for your car. That was down 7.5%. However – when it comes to the energy to heat your home – bls found natural gas costs skyrocket 9.8% year over year.
We also saw increases in airline fares, and personal care and medical care. But we saw decreases in used cars and trucks, household furnishings.
So what does this all mean? Well – right now – most experts believe this report when combined with the strong jobs numbers I reported on earlier this week – justify the federal reserve’s stance to hold interest rates steady – at least at their next meeting in march. The fed has been very much in a wait and see mode. That said – the fed has already projected that they will cut interest rates this year – and if the numbers continue in this direction – we could see those cuts begin during the fed’s summer meetings.
See the Consumer Price Index January report here.
