‘The Big Money Show’ panel reacts to cooler-than-expected inflation data, falling energy prices and growing expectations for multiple Fed rate cuts in 2026.
Americans are getting some relief from the decline gasoline pricesshowing that the latest inflation data from the Ministry of Labor has fallen significantly over the past year.
The Bureau of Labor Statistics announced this on Friday consumer price index (CPI) for January, which showed headline inflation rose 2.4% from a year ago, while the core CPI, which excludes volatile measures of food and energy, rose 2.5% in the period.
Energy prices fell 1.5% in January and have been broadly flat over the past year, down just 0.1% over that period, with much of the downward pressure coming from falling gas prices.
The index for all types of gasoline shows that prices fell 3.2% in the month of January and are down 7.5% over the past year, according to BLS data.
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Gas prices have fallen in the past year, which benefits household budgets. (Justin Sullivan/Getty Images)
The U.S. Energy Information Administration and the Federal Reserve showed that the average price of gas nationwide was $2.90 per gallon on Feb. 10.
On that date last year, gas was $3.13 per gallon, representing a decline of about 7.3%, roughly in line with January CPI facts.
The latest CPI inflation data also showed relief in other energy categories.
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Propane, kerosene and fuelwood costs fell 1.5% month over month and were 7.9% lower than a year ago.
The price of heating oil fell by 5.7% in January and by 4.2% in the past year.
While gas prices and these energy categories have brought relief to consumers, other forms of energy have seen prices rise, undermining some of that relief.
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According to the latest consumer price index figures, petrol prices fell in January. (Al Drago/Bloomberg via Getty Images)
Electricity prices are little changed month-on-month and are down 0.1% month-over-month, but are up 6.3% over the past year.
Utility service costs rose 1% in January and are 9.8% higher than last year, a significant price increase for households relying on gas to heat their homes this winter.
Raymond James chief economist Eugenio Aleman said in a note that the “picture for February’s CPI is likely to be very different from January’s as energy prices are likely to show positive results.”
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“However, we do not expect transport service price increases to remain as strong this month, and so inflation behavior will likely depend on how strong the reversal in energy prices was in February and what happens to prices throughout the month,” he added.
