Inflation Eases in January, But Costs of Essentials Still Rising

Overall inflation rate slows, but housing, food, and healthcare see continued price increases

Published on Feb. 13, 2026

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The U.S. inflation rate eased to 2.4% in January, according to a new Labor Department report, down from 2.7% in December. However, the costs of housing, food, and healthcare continued to rise, offsetting the overall slowdown in inflation. While the Mountain West region matched the national inflation rate, Utahns remain deeply concerned about the rising costs of basic necessities like groceries and housing.

Why it matters

Inflation has been a major economic concern for Americans, especially the rising costs of essential goods and services. This report shows that while the overall inflation rate is slowing, the prices of many necessities are still increasing, putting continued strain on household budgets. The regional data and survey of Utahns' economic outlook also highlight how inflation is impacting local communities.

The details

The Consumer Price Index rose 0.2% in January on a monthly basis, with the 12-month inflation rate coming in at 2.4%. Core inflation, which excludes volatile food and energy prices, hit 2.5%, the lowest level since April 2021. Housing costs, which make up about a third of CPI, increased 0.2% monthly and 3% annually. Grocery prices rose 0.2% from December and were 2.1% higher than a year ago, while dining out costs climbed 4% year-over-year. Energy prices slipped 1.5% monthly but were still 0.1% lower than January 2025. Medical care services increased 0.3% from December to January and are up 3.9% over the last 12 months.

  • The January 2026 inflation data was released on February 13, 2026.

The players

Heather Long

Chief economist at Navy Federal Credit Union.

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What they’re saying

“This is great news on inflation. Inflation fell to the lowest level since May and key items such as food, gas and rent are cooling off. This will provide much needed relief for middle-class and moderate-income families.”

— Heather Long, Chief economist (CNBC)

The takeaway

While the overall inflation rate has eased, the continued rise in the costs of essential goods and services like housing, food, and healthcare remains a significant concern for many Americans, especially in regional economies like Utah where inflation is closely mirroring the national trend.