US inflation slows as retail sales post fourth monthly rise

Inflation Trends - The annual Consumer Price Index (CPI) in the US rose by approximately 2.4% in January 2026, indicating a deceleration from December and falling below many economists' forecasts [2] - Monthly consumer prices increased by 0.2%, influenced by lower energy costs and modest rises in services and food categories [3] - Core inflation, which excludes food and energy prices, also exhibited restrained growth, although it remains elevated compared to long-term averages [4] Retail Sales Performance - Retail sales in January showed a steady expansion, with total sales rising by 0.2% on a seasonally adjusted monthly basis and increasing by 5.72% year-on-year, marking the fourth consecutive monthly increase [5] - Core retail sales, excluding categories like restaurants, demonstrated annual strength, particularly in clothing, digital products, and health and personal care [6] - The retail data, based on anonymized credit and debit card purchases, indicates sustained consumer demand beyond the holiday peak, with overall sales remaining above year-ago levels [7] Implications for Global Retail Sector - The moderating inflation rate in the US could alleviate pricing pressures on imported goods for international retailers, potentially stabilizing input costs [8]