Key updates to know as the day begins
Shelter costs remain big inflation driver
Housing-related expenses such as rent continued to be a major factor pushing inflation higher, as overall consumer prices increased at an annual rate of 2.7% in December, matching November’s pace, according to data released Tuesday by the U.S. Labor Department.
The report showed shelter costs climbed 0.4% compared with the previous month and were up 3.2% year over year. Other categories also remained elevated on an annual basis, including food prices, which rose 3.1%, and medical care services, which increased 3.5%. Energy prices showed more modest growth at 2.3%, helped by a 3.4% annual drop in gasoline prices.
Economists at Oxford Economics noted that recent shelter inflation figures were “artificially subdued” due to the federal government shutdown in October and are expected to temporarily rise through April before easing later in the year. Broader services inflation is facing downward pressure from improving productivity.
“Disruptions tied to the government shutdown have complicated interpretation of the data, but recent trends suggest inflation has already peaked,” said Michael Pearce, chief U.S. economist at Oxford Economics, in a statement Tuesday.
Pearce added that most tariff-related price increases have already been absorbed and that further cooling in services inflation during 2026 could bring overall inflation closer to the Federal Reserve’s 2% target by year-end, a key consideration for future interest rate decisions.
BlackRock may cut more jobs
BlackRock, the world’s largest asset manager, is reportedly preparing another round of job reductions that could impact roughly 250 employees, according to a Bloomberg report published Tuesday.
Sources familiar with the matter said the planned cuts would amount to about 1% of BlackRock’s global workforce and would primarily affect investment and sales teams. While no specific timing was disclosed, the reductions would bring the firm’s total job cuts over the past year to more than 700 positions.
A BlackRock spokesperson told Bloomberg that the company routinely adjusts staffing to ensure resources align with long-term goals and client needs. When contacted by CoStar News, a representative for the New York-based firm declined to confirm or comment on the report.
BlackRock has been shifting more capital and resources toward alternative investment strategies, including infrastructure and private credit. The firm joins other major financial institutions — such as UBS Group, Citigroup and JPMorgan Chase — that have announced workforce reductions amid evolving technology and market demands.
Office attendance edges higher
Office utilization rebounded following the holiday slowdown, with 10 major U.S. markets averaging 48.8% of pre-pandemic attendance levels during the week ending Jan. 7, according to data from Kastle Systems.
That figure marked a significant increase from the 33.4% recorded during the week of Christmas Eve and 20.8% during the week ending New Year’s Eve. However, attendance during the first full workweek of 2026 remained below the post-pandemic high of 56.3% seen in mid-December.
Based on anonymized keycard data, Texas cities continued to lead the nation, with Austin posting 67.1% attendance, followed by Dallas at 57.8% and Houston at 55.8%. Chicago and New York trailed closely behind, each reporting 51.8%.
Kastle analysts noted that early December attendance levels mirrored patterns typically seen in January and September, indicating that expanded in-office work policies may be boosting overall traffic. The firm suggested these trends could signal the emergence of a new workplace “normal” in 2026.
Source: Original reporting by Lou Hirsh, CoStar News.
