Back to Work! But Start 2026 With Some Really Good Inflation News

Truflation Says U.S. Inflation Has Dropped Below 2%

Happy first Monday back! After the holidays and New Year’s celebrations, most of us are trading weekend mode for spreadsheets and inboxes — but there’s an upbeat economic data point worth your morning coffee.

According to Truflation, an alternative real-time inflation tracker, the Personal Consumption Expenditures (PCE) price index — the inflation gauge the Federal Reserve cares most about — is now reported below 1.9%. That’s not just under the Fed’s long-target of 2% — it’s comfortably below it and suggests price pressures continue to cool. Crowdfund Insider

And when you think about it, easing inflation means all of us — consumers, savers, planners, business owners — get a little more breathing room in our financial lives.

What Exactly Is Truflation — and Why Should You Pay Attention?

Before anyone asks: No, this isn’t the government’s official inflation number. But that’s kind of the point.

Truflation is a real-time inflation index built to provide a sharper snapshot of price changes as they happen — not weeks later when official statistics arrive. It pulls millions of price points every day from a ton of sources to gauge how prices are moving across key categories like housing, food, transportation, healthcare, and more.

Here’s why that matters:

• Official reports (like CPI and PCE from government agencies) come out monthly and can lag what’s happening right now in the economy

• Truflation updates daily, giving a real-time look at inflation trends

• It’s especially helpful for people who want an early signal on pricing trends, markets, and cost pressures that affect budgeting, borrowing, and planning.

  
  

So think of Truflation as a kind of economic weather radar — not a silver bullet, but a timely signal that complements traditional measures.

Why This Drop Below 2% Is Worth Noting

The Federal Reserve’s preferred inflation gauge is the PCE price index, and Truflation’s version of that metric dipping below 1.9% is meaningful because:

• It’s showing inflation below the Fed’s long-run target of around 2%.

• Lower inflation generally softens the pressure for the Fed to keep hiking interest rates.

• As price growth eases, consumers can feel more confident about costs for everything from groceries to rent.

• Markets and businesses can make decisions with a bit more clarity about price trends ahead.

  
  

It doesn’t mean inflation is gone — price levels aren’t falling in a classic deflationary sense — but it does signal the trend is moving in the right direction.

A Real-World Lens, Not Just Numbers

Official inflation reports still matter — CPI and PCE from government agencies are used for policy, contracts, wage adjustments, and more. But having an independent, up-to-date gauge like Truflation adds depth to the picture.

Economists, investors, and analysts often look at multiple inflation measures to get a sense of both the current reality and the trajectory of price pressures.

Today’s Truflation reading reminds us that prices aren’t spiraling out of control, and in fact, may be stabilizing more than a lot of people expect — especially compared to the multi-year inflation spike many are still remembering.

What This Could Mean Moving Forward

Let’s be practical: this isn’t a magic wand that suddenly makes borrowing cheap or cancels out every price increase of the last few years.

But it is:

• A sign that inflation is loosening its grip

• A potential point of confidence for consumers and markets

• Another data point in a broader trend that inflation is normalizing

  
  

If this trend continues, we could see it strengthen the case for interest-rate stability or even modest relief over time, which has big implications for borrowing, investing, and long-term planning.

Bottom Line

Welcome back to work — and welcome to a year that could finally feel a bit more stable economically. Inflation dropping below the 2% threshold in real-time indicators like Truflation gives us a hopeful data point to build on. It won’t solve every financial concern, but it does mean 2026 might start with more balance than the last few years have offered.

Here’s to a productive Monday — and a promising year ahead.