Consumer prices rose 3.1% over the past year and rose 0.3% in January, according to data released Tuesday by the Labor Department.
The annual inflation rate fell from December’s 3.4%, but the monthly price increase rate accelerated slightly from the previous month’s 0.2%.
Economists had expected annual inflation to fall to 2.9% and monthly inflation to be around 0.2%, according to consensus forecasts.
The drop in inflation in January is the latest sign that the U.S. economy is holding up better than many experts expected, just nine months until the November election.
President Biden is trying to convince voters that he is better suited to navigate the economy after guiding the country through a record recovery from the coronavirus pandemic. Job growth has remained steady throughout President Biden’s term, and inflation has declined sharply after peaking at an annual rate of 9.1% in June 2022.
Still, Biden remains locked in a close race with former President Trump, and is lagging behind his predecessor in polls on economic performance. A Financial Times poll released on Monday asked voters who was better handling the economy and found Trump beat Biden by 11 points.
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