WASHINGTON (AP) — A key measure of inflation fell to nearly a five-year low last month as apartment rental price growth slowed and gas prices fell, offering some relief to Americans grappling with the sharp cost increases of the past five years.

A measure of inflation may have fallen to a five-year low in January as rental costs have cooled, a sign that some prices are moderating while Americans continue to grapple with a big rise in overall prices in the past five years.

Inflation cooled to 2.4% in January, nearing a five-year low as gas prices fell and rent growth slowed. While easing price pressures boost hopes for rate cuts, many Americans still face elevated costs compared to pre-pandemic levels.

Goldman’s new 3.05% PCE forecast is a brutal reality check for the Fed—and it could stall rate cuts for months.

Inflation eased more than expected to 2.4 percent pace last month.

The headline CPI rose 0.2% on a monthly basis, less than economists had forecast, while the core – which excludes food and energy – was in line with estimates, at 0.3%. A 1.5%

CPI report shows headline/core inflation cooling and PCE likely undershooting Fed forecasts—boosting rate-cut odds.

The core CPI inflation rate fell to its lowest level since early 2021.