The U.S. Bureau of Labor Statistics released on Friday that the overall inflation rate fell to 2.4 % in January, down from 2.7 % in December. Price gains within the first month of the year were 0.2 % month‑on‑month.

Core inflation-excluding energy and food-was 2.5 % in January, slightly lower than the 2.6 % reported in December. Energy prices dropped 0.1 % over the year, after a 2.3 % rise in the previous month. Food prices increased 2.9 % year‑on‑year, compared with 3.1 % in December.

Investors closely monitor U.S. inflation because it is a key indicator for the Federal Reserve’s monetary policy. Higher interest rates generally weigh on the stock and housing markets, as savings accounts and other fixed‑income alternatives remain attractive.