A cooler-than-expected reading and a strong jobs report are likely to keep Federal Reserve interest rates on hold.

Inflation cooled more than expected in January, according to consumer data released Friday by the Bureau of Labor Statistics.

The slightly lower number for January reflects smaller price increases for shelter and food, as well as a decrease in energy costs.

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.

The consumer price index eased in January but inflation was still elevated for many consumer necessities, economists said.

“The index for shelter rose 0.2% in January and was the largest factor in the all items monthly increase,” the BLS said in its release. “The food index increased 0.2% as did the food at home index, while the food away from home index rose 0.1%. These increases were partially offset by the index for energy, which fell 1.5% in January.”

Key Takeaways Forecasters expect inflation to have decelerated in January, with core prices rising 2.5% over the year, the lowest since 2021.Tariffs are still pushing up prices, but some costs, including for housing,