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flag Inflation slowed in early 2026, with core prices at their lowest since 2021, signaling possible stabilization after years above target.

flag Inflation slowed at the start of 2026, with the annual rate falling to its lowest level since May 2025 and the core measure holding steady at 2.5%, the slowest pace since March 2021, offering the clearest sign in months that price pressures may be stabilizing. flag This follows six years of inflation above the Federal Reserve’s 2% target, leaving households still strained by a 25% price rise since the pandemic recovery. flag While tariff-related price hikes were less severe than feared, their long-term effects continue to ripple through supply chains, delaying full inflation impacts. flag Companies have largely absorbed higher production costs rather than raising prices, but many are nearing limits on how long they can sustain this. flag Economists say the inflationary impact of tariffs is likely a one-time effect, but persistent underlying costs and supply chain adjustments could hinder further progress.

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