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The U.S. consumer price index on Friday stateside provided some balm to investors, who have been singed by drops in the market because of artificial intelligence-related fears. Consumer inflation for January rose 2.4% on a year-on-year basis, lower than the 2.7% in December, and returning to where it was after President Donald Trump fired off tariffs globally in April 2025. Core CPI came in at 2.5%, the lowest since April 2021. Economists were expecting 2.5% for both figures.
“This should be welcome news for markets, and the presumptive incoming Fed Chair Kevin Warsh,” said Phil Blancato, Osaic chief market strategist. “This is only one month’s worth of data, but if the trend continues it should pave a path for lower interest rates and reined in inflation.”
U.S. markets, however, on Friday made only tentative steps in either direction, perhaps still unsure of where to move amid uncertainty about the effects of AI on companies. All major indexes ended the week in the red.
