Inflation Watch | January 2026 CPI Beats Market Forecast & Lowest Annual Number since May 2025 | Northern Virginia Real Estate Market

When asking the question, "How is the Northern Virginia Real Estate Market?", part of the answer is to consider current and future mortgage interest rates. One economic number that can affect mortgage rates is Inflation, as the Fed watches this data when assessing whether to take action that can affect mortgage rates. This Inflation Watch monthly update tracks Consumer & Wholesale Inflation numbers and related information.

💵💲💰 INFLATION WATCH - WHAT DO THE JANUARY 2026 NUMBERS SHOW? Check out the data. ⬇️⬇️⬇️ The Bureau of Labor Statistics (BLS) published the November Consumer Price Index (CPI) numbers on February 12th.

The January Producer Price index (PPI) numbers will be published on February 27th.

☑️ To recap the December 2025 CPI numbers, the top line number rose 0.2% in November (as forecasted). The annual rate was 2.7% (as forecasted) over the past 12 months. The December annual rate was the same as November.

☑️ January CPI rose 0.2% & 2.4% for the last twelve months. Both numbers beat the Market forecast (0.2% & 2.5%).

☑️ The January annual CPI is the lowest since May 2025.

☑️ Core CPI, which strips out volatile Food and Energy prices, rose by 0.3% in January & 2.5% for the last twelve months. Both numbers matched the Market forecast. December Core CPI numbers were 0.2% and 2.6%. Core CPI is the number considered by the Federal Reserve to be a better gauge of long term trends.

A thank you as always to Sarah Gibbs Senior Mortgage Loan Officer at First Heritage Mortgage. ☎️ 202-280-5842 | 📧 sgibbs@fhmtg.com

If you want to discuss how inflation might affect the Northern Virginia real estate market in early 2026, or you have a specific real estate buying or selling need, please consider me a resource.

For all my deep dive market analysis & monthly updates on the NoVA real estate market, including West End Alexandria & Kingstowne areas, check out bellacasapartners.com/marketnews.

My latest deep dive NoVA Market Update for December is at the following link. Check out the early December 2025 update here, where i took a look at Buyer activity and Days on Market data as an indicator of what we are seeing in the Northern Virginia Real Estate market as we start 2026.

My next deep dive NoVA Market Update will be published in on February 16th with a further look at data that could indicate what kind of Buyer Activity & New Listings trend we may see in our Spring 2026 Market, which starts in February.