Welp, it only took a half-decade. Inflation eased much more than expected last month, dropping to a five-year low, according to a recent release of government data.

In January, overall prices were 2.4% higher than a year ago, which is lower than December and the smallest increase since last May, according to a Friday report by the Bureau of Labor Statistics.

That’s a sign inflation is slowing down, but everyday costs (including rent, gas, and food) have still spiked since the pandemic, as prices are about 25% higher than they were five years ago.

Despite that… price increases slowed across multiple categories, and in some cases, shoppers actually saw costs drop.

As inflation eased, prices on typically expensive products stopped growing or downright dropped:

However… some things got more expensive. Air travel prices jumped 6.5%, while music streaming services raised subscription prices by 4.5% last month.

Are tariffs to blame? The inflation slowdown comes as consumer confidence has declined and the Trump administration has repeatedly emphasized affordability for Americans. While most economists had expected the president’s tariffs to fuel widespread price increases, so far the impact has largely been limited to certain imported goods, such as furniture.

🌎 Why does this matter? While cooling inflation means everyday Americans may start to see slower price increases for essentials like gas, groceries, and rent, prices are still higher than a few years ago, so many households will continue feeling pressure in their monthly budgets.

Did someone flip over the open sign? On Saturday, a partial government shutdown focused on the Department of Homeland Security (DHS) began after negotiations between congressional Democrats and the White House broke down.

Yep, pretty much. The mini shutdown started after lawmakers failed to reach a funding agreement on Friday night, thanks to disputes over immigration policy and oversight of federal agents.

As per usual, Democrats and Republicans were on opposite sides of the aisle:

Since lawmakers couldn’t propose a compromise by the deadline, the DHS shutdown began immediately and will continue until both parties can work together to propose a solution.

While many key security and border operations are still up and running, the shutdown is creating patchy disruptions across the agency:

Unlike a normal shutdown… over 90% of DHS staff are considered essential and must work during the closure, most without pay, until funding is restored. Some employees are furloughed, which can slow back-office services and administrative support. See other affected agencies here.

Looking forward: The shutdown will end the moment a funding agreement passes, but lawmakers remain deadlocked as of writing. And, since Congress left Washington for a recess, it’s expected to last at least 10 days unless they’re called back early to strike a deal.

🌎 Why is this important? The shutdown is likely to slow airport security, immigration processing, and some cybersecurity operations. Expect longer airport security lines and potential travel delays, disrupted passport processing, visa services, and some customs operations.

Oh, how the tables have turned. Last week, IBM said it will triple its entry-level hiring in the US this year, even as AI has drastically reduced demand for many early-career roles in the tech industry.

Tasks that once formed the backbone of entry-level roles Gen Z is pursuing, like basic coding and administrative work, are being taken over by AI tools. But, instead of replacing those roles, IBM says it wants to redesign them.

According to the company’s Chief HR Officer, Nickle LaMoreaux:

LaMoreaux claims that investing in young, early-career roles can help build future leadership, ensuring the company will maintain a strong talent pipeline in an AI-driven economy.

The job market hasn’t been friendly to Gen Z: Unemployment for young workers has hovered around 10% (more than double the overall average), hiring of workers 25 and under has fallen roughly 45% since 2019, and more than half of recent college graduates either don’t have a full-time job or are underemployed in jobs that don’t require a degree.

🌎 Why is this important? IBM’s lifeline to young professionals might not just change its own company policies, but mark a shift in hiring practices. Some other businesses, like Dropbox, are already following suit. The change could make it easier for early-career job seekers to get hired in a market that has been historically difficult to do just that.

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Who would’ve guessed? Sales of pre-owned homes in the US fell 8.4% in January, the largest monthly decline since early 2022, according to a recent report by the National Association of Realtors (NAR).

According to the report (see here), the drop came after several months of improving activity late last year, making it far steeper than economists expected:

Why is no one selling? The NAR said frigid weather in parts of the US may have contributed to the slowdown, though areas unaffected by the cold still saw sales fall. Analysts also pointed to economic uncertainty and a shortage of available homes, which continues to keep prices elevated.

Another reason you might be missing… is that no one wants to leave their homes. Homeowners have held onto their properties for an average of 8.6 years, the longest time on record, so they can keep the ultra-low mortgage rates they locked in during the pandemic.

🌎 Why should you care? Besides making the housing market harder to navigate, slumping home sales can keep prices and mortgage rates higher for longer, making it harder for first-time buyers (especially people in their 20s) to afford a home or build one of their own.

Bet you didn’t expect a little girl. North Korean leader Kim Jong Un appears to be positioning his teenage daughter as his eventual successor, according to South Korea’s intelligence agency.

Kim’s daughter, believed to be a 13-year-old girl named Kim Ju Ae, was first seen publicly at a missile test in November 2022 and has since appeared frequently alongside her father in state media.

During a closed-door briefing, officials said her status has shifted from being “in training” to being designated as the country’s next leader:

Looking forward: South Korea’s spy agency is watching closely for further signs, like if she receives an official title or appears at a major Workers’ Party meeting, that could confirm her role.

🌎 Why should you care? A clearer line of succession reduces the chances of a sudden power vacuum in North Korea, which would raise the risk of military conflict and could involve US troops in Asia, disrupt global trade routes, or spike defense spending funded by taxpayers. On the other hand, cementing a hereditary dictatorship means North Korea isn’t moving toward reform anytime soon, so tensions, sanctions, and nuclear brinkmanship would remain as the reality Americans would live under.

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