Consumer prices rose 2.4% annually in January, less than expected

• January Consumer Price Index (CPI) M/M rose +0.2% vs. +0.3% estimated.
• January Consumer Price Index (CPI) Y/Y rose +2.4% vs. +2.5% estimated.
• CPI ex-food & energy M/M and Y/Y came in at consensus (+0.3% M/M, +2.5% Y/Y).
• Key components like Owners' Equivalent Rent (OER) at +0.2% and energy prices (gasoline down 3.2%) contributed to the lower-than-expected overall CPI.
• Market futures (S&P 500, DJIA, NASDAQ 100) turned positive, and Treasury yields (10-year, 2-year) fell following the release, indicating a positive market response to the 'tame' inflation data.

The video discusses the January CPI data, which showed consumer prices rising less than expected both month-over-month (+0.2% vs. +0.3% est.) and year-over-year (+2.4% vs. +2.5% est.). This 'tame' inflation report, particularly with lower rent and energy costs, is seen as giving the Federal Reserve more flexibility, leading to a positive market reaction with futures turning green and Treasury yields falling.