Will the decline in inflation help lower mortgage interest rates? Here's what borrowers need to consider right now.

WASHINGTON (AP) — A key measure of inflation fell to nearly a five-year low last month as apartment rental price growth slowed and gas prices fell, offering some relief to Americans grappling with the sharp cost increases of the past five years.

Inflation in the United States eased at the start of 2026, providing a reprieve to the Federal Reserve as it contends with yet another year of consumer prices rising faster than the central bank’s target. Here is what the latest Consumer Price Index showed on Friday.

WASHINGTON, Feb 13 (Reuters) - U.S. consumer prices likely maintained a steady pace of increase in January as businesses raised prices at the start of the year, which together with a stabilizing labor market could allow the Federal Reserve to keep interest rates unchanged for a while.

San Diego County started 2026 with its lowest inflation rate in more than a year. The region’s rate dropped to 2.6% in January, said the U.S. Bureau of Labor Statistics’ Consumer Price Index on Friday.

Inflation eased to 2.4% in January, the lowest in 8 months, raising speculation the Fed may revisit its steady interest rate stance in March.

There's a good chance the most critical measure of inflation in the CPI report will slow to a five-year low, but it doesn't mean the battle against higher prices is almost won. The so-called core CPI is forecast to slow to 2.