Here are the key takeaways from the January Consumer Price Index report:

The overall CPI rose 0.2% month-over-month, below economists’ expectations; the core CPI, excluding food and energy prices, rose 0.3% month-over-month, in line with expectations. A 1.5% decline in energy prices was the primary reason for the slowdown in overall inflation to its lowest monthly pace since July of last year.

The overall inflation rate and core inflation rate were 2.4% and 2.5%, respectively. This is the smallest year-over-year increase in core prices since the surge in the cost of living in the spring of 2021. Economists noted that these figures are consistent with the Federal Reserve’s 2% inflation target—although that target relies on another index, the Personal Consumption Expenditures (PCE), which has recently outpaced the CPI.

While the CPI rose only 0.2%, well below levels of the past few years, housing costs remained the largest contributor to CPI increases. Excluding housing costs, the so-called core services inflation rate accelerated to its fastest monthly pace since January of last year.

Prices in some politically sensitive categories improved. Used car prices fell 1.8% month-over-month, while new car prices rose 0.1%. Beef and veal prices—a key focus for the White House’s cost-of-living efforts—fell 0.4%. Egg prices fell 7%.

Following the report’s release, U.S. Treasury prices rose, with the two-year Treasury yield falling about 4 basis points as of 9:23 a.m. New York time. The Bloomberg Dollar Spot Index gave back its earlier small gains. Stock index futures were little changed.