“Today’s CPI report not only surpasses expectations but also suggests that President Trump has successfully navigated Joe Biden’s inflation crisis: overall inflation is down, and real wages have increased by $1,400 during President Trump’s initial year in office. Housing inflation is notably easing, while prescription drug prices are on a downward trend in 2025 — with further relief expected for American patients due to President Trump’s Most Favored Nation drug pricing agreements and the Great Healthcare Plan. With inflation stabilized at a low level, the U.S. economy is poised for an accelerated growth phase propelled by much-needed interest rate reductions from the Federal Reserve.”
— White House Deputy Press Secretary Kush Desai
Key Takeaways:
President Trump’s America First agenda effectively curbs inflation — sans tariff-related spikes.
- Year-over-year inflation registered at 2.4% in January — exceeding forecasts and marking the lowest rate since May.
- Core inflation — often regarded as the most reliable inflation metric — fell to its lowest level in almost five years, highlighting the enduring advancements in the Trump Economy.
Wages are rising faster than prices, enhancing Americans’ purchasing power.
- In January, real average hourly earnings for private-sector employees increased by 1.2% over the previous year; for middle- and lower-wage workers, the increase was even more significant at 1.5%.
- During President Trump’s first year back in office, real earnings for private-sector workers have outpaced inflation by nearly $1,400, helping to recover some of the nearly $3,000 lost under Biden’s administration.
- Mining workers: +$2,400
- Construction workers: +$2,100
- Manufacturing workers: +$1,700
- Goods producing workers: +$1,700
President Trump is providing tangible relief at the grocery store, pharmacy, and gas station.
- In line with his commitment to reduce costs for everyday Americans, President Trump has seen key prices decline in January and throughout the past year.
- Prices for beef, eggs, and coffee all saw reductions in January — clear indicators of relief stemming from President Trump’s pro-growth, anti-inflation policies and focused efforts to manage prices in crucial sectors. Energy prices fell by 1.5%, and gasoline prices dropped by 3.2% last month. Additionally, used vehicle prices decreased by 1.8% in January.
- Prescription drug prices remained stable in January and have decreased over the past year — with further savings anticipated thanks to President Trump’s groundbreaking drug pricing reforms and the Great Healthcare Plan.
This report serves as further validation that President Trump’s assertive economic leadership is making affordability a reality, enhancing disposable income, and setting the stage for a new era of economic prosperity in the United States.
