US inflation eased in January, with CPI up 2.4% year on year and prices rising 0.2% on the month. Core CPI, which strips out food and energy, rose 0.3% on the month and 2.5% on the year, showing services prices are still proving sticky even as energy and rent pressures cool. The fall gives the White House fresh talking points that tariffs are not causing a lasting spike, but the Fed is likely to stay cautious because tariff costs could yet feed through more clearly, and wage driven services inflation may slow only gradually. Investors read it as mildly supportive for rate cuts later in 2026, with markets leaning towards a first cut around mid-year rather than March. After the release, US Treasury yields dipped, the dollar firmed, and shares were mixed.