Consumer prices in the United States rose at a slower pace in January 2026, while retail sales data showed continued gains for the fourth month in a row.
The two key economic indicators – inflation trends and retail spending – offer insights into household demand, pricing pressures and market conditions for global retail supply chains and business planning.
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The US inflation picture: slower price growth
The consumer price inflation rate in the US eased in January, with the annual Consumer Price Index (CPI) rising by about 2.4% compared with a year earlier. That marked a deceleration from December, and was below many economist forecasts.
On a monthly basis, consumer prices climbed 0.2%, driven in part by lower energy costs and modest increases in other categories such as services and food. Core inflation, which excludes volatile food and energy prices, also showed restrained growth.
Price pressures varied across sectors. Energy costs declined, led by falls in gasoline prices, while shelter and services categories continued to see higher costs. Used vehicle prices also contributed to softer inflation readings.
The moderation in inflation intensity aligns with broader expectations that price pressures may be cooling, although core inflation remains elevated relative to longer-term averages.
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By GlobalDataRetail sales growth highlights consumer resilience
Retail spending in January maintained steady expansion, according to the CNBC/NRF Retail Monitor, which tracks US retail sales excluding automobile dealers and gasoline stations.
Total retail sales rose by 0.2% on a seasonally adjusted monthly basis and surged 5.72% year-on-year. This marked the fourth consecutive monthly increase in retail sales.
Core retail sales, excluding additional categories such as restaurants, also showed annual strength. Clothing and accessories, digital products, and health and personal care categories were among those with notable year-on-year gains.
Most retail segments tracked by the Monitor recorded annual increases in January, underscoring broad-based consumer spending.
The retail data, which uses anonymised credit and debit card purchase information rather than survey sampling, suggests sustained demand beyond the holiday peak.
While some goods categories recorded modest monthly declines, overall sales remained above year-ago levels, reflecting continued consumer engagement.
Implications for global retail sector and pricing strategies
For international retailers and supply chain managers, the moderating us inflation rate could relieve pricing pressures on imported goods and help stabilise input costs.
Slower inflation may also influence decisions on inventory pricing, procurement timing and contract negotiations with suppliers.
Steady retail sales growth points to persistent consumer demand, which global brands and distributors will watch closely. Strong year-on-year gains in key retail categories could support continued investment in merchandising, e-commerce capabilities and logistics to meet evolving buying patterns.
Taken together, softer inflation and resilient retail spending offer a nuanced picture of the us economy as it enters 2026.
Companies operating across regions are likely to adjust strategies based on these trends, balancing pricing tactics with demand forecasts in an environment of modest but positive growth.
