(NEW YORK) -- nflation cooled in January, dropping price increases to their lowest level in nine months, new data from the Bureau of Labor Statistics showed. The lower-than-expected reading defied fears of a tariff-induced hike in overall costs.
Affordability remains a concern for many Americans as the political calendar turns closer to election season.
White House press secretary Karoline Leavitt touted the inflation report in a post on X on Friday.
The data arrived days after fresh hiring figures showed stronger-than-expected job growth in January, even though an updated estimate released at the same time indicated a near-paralysis of the labor market last year.
Over the past year, hiring has slowed dramatically while inflation has remained elevated, risking an economic double-whammy known as "stagflation." Those conditions have put the Federal Reserve in a difficult position.
The Fed held interest rates steady at its most recent meeting in January, ending a string of three consecutive quarter-point rate cuts.
Futures markets expect two quarter-point interest rate cuts this year, forecasting the first in June and a second in the fall, according to the CME FedWatch Tool, a measure of market sentiment.