The latest reading of the Federal Reserve's preferred inflation gauge showed prices rose on a monthly basis but dropped year over year, which should keep the central bank on hold at its next meeting in March.

Inflation rose 2.5% over the year in January compared to 2.6% in December, marking the first decrease in four months.

Consumer spending, the primary driver of the U.S. economy, saw its biggest drop in four years despite a slight rise in personal income.