Annual consumer inflation in the U.S. came in at 3.1% in January, slowing down from a 3.4% gain in December, according to figures released Tuesday.
The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, was higher than estimates of 2.9%.
The figure, however, is a sharp decline from 9.1% annual gain recorded in July 2022, which was the largest since November 1981.
"The energy index decreased 4.6 percent for the 12 months ending January, while the food index increased 2.6 percent over the last year," the Labor Department's Bureau of Labor Statistics said in a statement.
The CPI rose 0.3% in January, compared to the previous month, while expectations for the figure was to show a gain of 0.2%.
The figure for December was revised down to an increase of 0.2% from 0.3%.
Core CPI, which excludes volatile food and energy prices, gained 0.4% in January from the previous month, coming higher than estimates of 0.3%, after rising 0.3% in December.
Annually, core CPI climbed 3.9% in January, also higher than expectation of 3.7%, following a 3.9% year-on-year gain in November.
President Joe Biden later said wage growth has been the strongest of any economic recovery in 50 years.
"At a time when growth and employment remain strong, inflation declined by two thirds from its peak but we know there's still work to do to lower costs," he said in a statement released by the White House.
Biden said he will continue to fight to lower costs for American families, from insulin and other prescription drugs to eliminate junk fees that companies charge consumers.
