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Sign InEconomic data from January 2026 reveals a favorable combination of cooling inflation and a resilient US labor market. The Consumer Price Index (CPI) rose by 0.2% for the month, bringing the annual inflation rate to 2.4%, edging closer to the Federal Reserve's target. Core inflation, which excludes volatile food and energy prices, showed a steady monthly increase of 0.3%. Despite the cooling price pressures, the labor market continued to add jobs at a stable pace, significantly strengthening the "soft landing" narrative. This trend suggests that the Fed's restrictive monetary policy is effectively curbing inflation without triggering a broader economic recession. Market participants anticipate that these figures could pave the way for potential rate cuts or a continued pause, providing support for equities and gold prices.