U.S. Economy in January 2026: CPI at 2.4%, 130K Jobs Added – News and Statistics

Feb 15, 2026

According to a report from Invezz, the United States economy showed a mix of cooling inflation and steady job growth in January, supporting the possibility of a soft landing. The Consumer Price Index for All Urban Consumers rose 0.2 percent for the month and was up 2.4 percent from a year earlier. This annual rate was lower than the 2.7 percent recorded in December and was slightly softer than economists had anticipated.

Core inflation, which excludes food and energy prices, increased 0.3 percent in January and was 2.5 percent higher over the past year. The Bureau of Labor Statistics noted that shelter prices, which rose 0.2 percent for the month and 3.0 percent over the year, were the largest contributor to the monthly increase in the overall index. The energy index fell 1.5 percent in January, with gasoline prices declining. The food index rose 0.2 percent.

Within smaller categories, airline fares rose sharply while used car and truck prices fell. The data suggested that disinflation is continuing, though not in a perfectly smooth manner.

Concurrently, the labor market remained steady. Total nonfarm payroll employment increased by 130,000 in January, and the unemployment rate changed little at 4.3 percent. Job gains were concentrated in health care, social assistance, and construction, while federal government employment and financial activities saw declines. Average hourly earnings for all private nonfarm employees rose 0.4 percent to $37.17 and were up 3.7 percent over the past 12 months. The average workweek edged up to 34.3 hours.

Revisions to previous data tempered the single-month readings. November and December 2025 payroll growth was revised down by a combined 17,000 jobs. More broadly, the annual benchmark process revised the March 2025 level of total nonfarm employment down by 898,000 and significantly reduced the count of 2025 job gains. These adjustments reinforce that the labor market has cooled from its earlier post-pandemic pace.

The combination of easing headline inflation and continued moderate job growth fits the narrative of a soft landing, where inflation recedes without the economy entering a recession. For the Federal Reserve, the data argues for patience. The immediate market reaction included a slip in Treasury yields following the inflation report.

Risks remain, however. If shelter and other service categories keep core inflation elevated, the Fed may feel less urgency to cut interest rates. Furthermore, if hiring cools too quickly, the soft landing could begin to look more like an economic slowdown. The data from January provides fresh evidence for the soft-landing scenario heading deeper into 2026, but subsequent economic reports will be critical.

Source: IndexBox Market Intelligence Platform