One month into 2026, U.S. inflation continues to run above 2% for a fifth consecutive year—and the reason goes beyond a single cause.

Some recent data—including easing in core services and vehicle prices—might suggest relief is near, but a closer look reveals these improvements are unlikely to persist as a trend.

In this episode of the 10-Minute Take, RBC Economics' Claire Fan and Carrie Freestone explore what's driving inflation and how to cut through the noise. They explore:

1. How a tight labor market, robust consumer demand, tariffs flowing through supply chains, and a lagging housing inflation measure are all keeping inflation elevated.
2. What are the critical differences between the Consumer Price Index and Personal Consumption Expenditures and why the Fed's preferred measure often tells a different story than headline CPI readings.
3. Key data challenges and what to monitor: The Producer Price Index for tariff signals, business surveys for pricing intent, and wage dynamics for inflation's floor.