Scott Horsley

That's a smaller annual increase than the previous month and slightly lower inflation than forecasters were expecting.

Prices rose just two-tenths of a percent between December and January.

Falling gasoline prices during the month helped to offset some of the increase in rents and grocery prices.

Although inflation has been cooling, prices are still climbing faster than the Federal Reserve would like.

The central bank is widely expected to hold interest rates steady when policymakers meet next month, but the odds of a rate cut at the following meeting in late April have increased slightly.

Scott Horsley, NPR News, Washington.

The Labor Department is set to report Friday on the cost of living for January.

Forecasters expect the report to show prices rose about 2.5 percent over the last 12 months.

That would be a slightly smaller annual increase than we saw in December.

Inflation is still above the Federal Reserve's target, though, and investors think the central bank will hold interest rates steady next month.

Many cost-conscious shoppers are looking for bargains.

McDonald's credited the McValue menu with helping to boost sales to the fast food chain during its most recent quarter.

Scott Horsley, NPR News, Washington.

The Labor Department is set to report Friday on the cost of living for January.

Forecasters expect the report to show prices rose about 2.5 percent over the last 12 months.

That would be a slightly smaller annual increase than we saw in December.

Inflation is still above the Federal Reserve's target, though, and investors think the central bank will hold interest rates steady next month.

Many cost-conscious shoppers are looking for bargains.

McDonald's credited the McValue menu with helping to boost sales to the fast food chain during its most recent quarter.

Scott Horsley, NPR News, Washington.