Trending Now - Inflation Gauge Declined in January Amid Rising Gas Prices

WHO:

Federal Reserve

Commerce Department

AAA (American Automobile Association)

Economists

WHAT:

Inflation gauge rose 2.8% in January 2026 compared to January 2025.

Core prices rose 3.1% in January 2026, up from 3% in December 2025.

Monthly prices rose 0.3% in January 2026.

Core prices jumped 0.4% for the second consecutive month.

Oil prices soared more than 40% since the Iran war began on February 28, 2026.

Gas prices increased to $3.60 a gallon from just under $3 a month earlier.

Consumer spending rose at a pace of 0.4% in January 2026.

Incomes rose 0.4% in January 2026.

After-tax incomes jumped 0.9% in January 2026.

WHERE:

Washington, D.C.

Strait of Hormuz

WHEN:

January 2026

December 2025

February 28, 2026

Next week (March 2026)

WHY:

The increase in inflation is attributed to the war with Iran, which has disrupted oil supply.

HOW:

The Federal Reserve has kept its key interest rate elevated to slow borrowing, spending, and growth.

(UPDATED March 13, 2026 23:11 UTC)

In a report released by the Federal Reserve and the Commerce Department, inflation rose 2.8% in January compared to the same month last year, largely driven by the ongoing war with Iran that has disrupted oil supplies. Core prices also saw an increase of 3.1% in January, up from 3% in December, while gas prices jumped to $3.60 a gallon, reflecting a more than 40% surge in oil prices since the conflict began on February 28. Despite these challenges, consumer spending and incomes both rose by 0.4% in January, with after-tax incomes increasing by 0.9%, as the Federal Reserve maintains elevated interest rates to curb borrowing and spending.